CBOT soybeans may retest support at $13.53-1/2
- On the daily chart, a hanging man formed on Monday around a resistance at $13.85, the 600% projection level of an uptrend from $8.75.
SINGAPORE: The CBOT soybean March contract may retest a support at $13.53-1/2 per bushel, following the completion of a five-wave cycle.
The cycle started at $12.46-1/4. It has an extended wave 1 and a very short wave 5. This wave structure signals a diminishing bullish momentum.
A temporary top may have formed around $13.86-1/2.
Resistance is at $13.73-3/4, a break above which could lead to a gain to $13.86-1/2, the 200% projection level of the uptrend from $12.80.
On the daily chart, a hanging man formed on Monday around a resistance at $13.85, the 600% projection level of an uptrend from $8.75.
The reversal pattern looks convincing, given that the contract failed twice to break $13.85. Its indication is strong that a decent correction is due.
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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