SINGAPORE: The CBOT soybean July contract may retrace into a range of $8.72-1/2 to $8.78-3/4 per bushel, as it looks shaky around a resistance at $8.87-3/4.
The resistance is identified as the 38.2% projection level of an upward wave c from $8.48-1/4. From the June 12 low of $8.53-1/4, this wave has been quite steady. It has not been disrupted by a decent correction yet.
The current resistance may trigger such a correction. A projection analysis on the daily chart reveals a resistance at $8.92-1/2, the 38.2% projection level of a downward wave C from $9.64-1/4.
The resistance at $8.92-1/2 works together with the one at $8.87-3/4 to prevent a further gain. A break above $8.92-1/2 may open the way towards $9.20.
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** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses. **
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