SINGAPORE: The CBOT soybean March contract may retest a resistance at $14.13 per bushel, a break above which could lead to a gain to $14.23 to $14.38-1/2 range.
The contract has risen above a key barrier at $13.97-1/4, the 161.8% projection level of an upward wave C from $12.23-1/2. Chances are it may extend gains to $14.54.
The resistance triggered a correction which seems to be completing around a support at $13.97-1/4. The uptrend may have resumed while riding on a wave 5.
The strong bullish momentum suggests an extension of this wave. A break below $13.97-1/4 could cause a fall to $13.84-3/4.
On the daily chart, the contract is testing a resistance at $14.11, the last barrier towards $14.45-1/2.
So much of the drop from $14.45-1/2 has been reversed that this high is highly likely to be revisited.
However, the bearish divergence on RSI suggests a due deep correction which may occur soon, unless it could be violated by a strong rise on Monday.
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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