CBOT soybeans may retest support at $13.56-1/4
- The ultimate target of this wave at $13.97-1/4 has to be aborted
SINGAPORE: The CBOT soybean March contract may retest a support at $13.56-1/4 per bushel, a break below which could open the way towards $13.38-1/2 to $13.46-1/2 range.
The contract failed to break a resistance at $13.84-3/4, the 150% projection level of the wave C.
The failure and the depth of the following drop indicate a completion of this wave.
The ultimate target of this wave at $13.97-1/4 has to be aborted. It will only be resumed when the contract breaks $13.72.
On the daily chart, a retracement analysis reveals a resistance at $13.85-3/4, the 76.4% level. The long-shadowed shooting star on Dec.
28 indicates a slim chance of the contract to overcome this barrier.
The contract may test the support at $13.49.
Anyway, the rise from the Dec. 14 low of $12.43-1/2 looks too linear to sustain.
It may be further reversed by the current correction.
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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