CBOT soybeans may test resistance at $13.90-1/2
- The fall from this day high of $14.34-1/2 may consist of three parts. Only the first part is over, which will be partially reversed.
SINGAPORE: The CBOT soybean March contract may test a resistance at $13.90-1/2 per bushel, a break above could lead to a gain to $14.10.
The resistance is provided by the 38.2% projection level of a downward wave c from $14.10. This wave may have ended. The current rise seems to be driven by a wave B, the second wave of a presumed three-wave cycle from $14.35-3/4.
In its full capacity, the wave B may extend to $14.10. Support is at $13.66, a break below which could cause a fall into $13.39-3/4 to $13.51-3/4 range.
On the daily chart, a projection analysis on the uptrend from $8.75 reveals a support at $13.52-1/2, the 561.8% level, around which a hammer formed on Wednesday.
This hammer looks like a reliable bullish reversal pattern, as the contract is rising. The three candlesticks from the Jan. 15 formed a three black crows pattern, which signals a trend reversal.
The fall from this day high of $14.34-1/2 may consist of three parts. Only the first part is over, which will be partially reversed.
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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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