CBOT soybeans may rise to $8.89-3/4

• Support is at $8.81-3/4, a break below which could cause a fall limited to $8.76-3/4.
• The contract found a support zone of $8.71-3/4 to $8.73-1/2, formed by the 76.4pc retracement on the uptrend from $8.41-1/2 to $9.70.

SINGAPORE: CBOT March soybeans may rise to $8.89-3/4 per bushel, as suggested by its wave pattern and a retracement analysis.

A five-wave cycle from the Jan. 13 high of $9.49-1/2 is over. The current strong bounce may extend to the peak of the wave 4 around $9.03.

A realistic target will be $8.89-3/4, the 61.8pc retracement of the fall from $9.03 to $8.68-3/4.

Support is at $8.81-3/4, a break below which could cause a fall limited to $8.76-3/4.

On the daily chart, the contract found a support zone of $8.71-3/4 to $8.73-1/2, formed by the 76.4pc retracement on the uptrend from $8.41-1/2 to $9.70, and the 100pc projection level of a downward wave c.

It is rising towards a resistance at $8.90-1/2, a break above which could open the way towards $9.05-3/4.