SINGAPORE: The CBOT soybean January contract looks sideways within a narrow range of $12.35-1/2 to $12.58, and an escape could suggest a direction.
The contract is suffering from a weak momentum, unable to get out of the awkward situation. What muddies the water is a falling trendline, which crosses the range.
Before market starts a strong move, best choice is to wait patiently. In most of the times, patience is still a virtue.
On the daily chart, the contract is trying to edge out of a falling channel.
The little hope brought by the white candlestick on Tuesday quickly disappeared on Wednesday, unless the contract could close above the Tuesday high of $12.61.
The only hope is the contract may end its sideways move very soon.
A break below $12.40 will confirm the continuation of the downtrend.
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