SINGAPORE: The CBOT soybean March contract may fall to $13.56-3/4 per bushel, as it has broken a support at $13.76-3/4.
The support is identified as the 23.6% projection level of a downward wave C from $14.09-1/2. The break below the support signals a possible extension of the drop from the Feb. 9 high of $14.09-1/2.
The lower trendline of this pattern suggests a target of $13.56-3/4.
On the daily chart, the contract is stuck in a neutral range of $13.54-1/2 to $13.97.
Following its failure to break $13.97, the contract may retreat towards $13.54-1/2. A drop below $13.54-1/2 could signal an extension of a wave 4 towards $13.03-3/4.
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.