SINGAPORE: The CBOT soybean March contract may break a resistance at $13.56-1/4 per bushel, and rise towards a range of $13.72 to $13.97-1/4.
The contract is riding on a wave C, which has travelled far above $13.31, the 100% projection level. It is extending towards a zone of $13.72 to $13.97-1/2.
Support is at $13.46-1/2, a break below which could cause a fall into a range of $13.31 to $13.38-1/2. On the daily chart, a retracement analysis reveals a resistance at $13.49, the 61.8% level, which has been broken.
The break opened the way towards $13.85-3/4.
The pattern from the Oct. 13 low of $12.06 to the Nov. 30 low of $12.24 is recognised as an inverted head-and-shoulder, which has been confirmed.
The pattern indicates a target of $13.85-3/4.
A close below $13.49 on Monday could signal the break above this level was false.
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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