CBOT soybeans neutral in $8.43 to $8.46-1/2 range

SINGAPORE: CBOT July soybeans looks neutral in a range of $8.43 to $8.46-1/2 per bushel, and an escape could suggest a direction.

The range is formed by the 38.2pc and the 23.6pc retracements of the uptrend from $8.28-1/2 to $8.52-1/4 per bushel.

A break above $5.46-1/2 may signal the extension of the uptrend towards $8.52-1/4 while a break below $8.43 could cause a fall into $8.37-1/2 to $8.40-1/4 per bushel range.

The bias could be towards the upside, as the drop from $8.52-1/4 looks like a pullback towards a falling trendline.

On the daily chart, the pullback is towards a much longer trendline.

A retracement analysis on the downtrend from $9.84-1/4 to $8.18-1/2 reveals a support at $8.42-1/2, the 14.6pc level, around which the contract manages to stabilize.

As long as it hovers above $8.42-1/2 per bushel, the contract may rise towards $8.57-1/2.