SINGAPORE: The CBOT soybean March contract may fall into a range of $13.56-1/4 to $13.72 per bushel, due to the completion of a five-wave cycle from $12.23-1/2.
The fifth wave, the wave (5), could be well broken down into five smaller waves. Such a structure, along with the drop on Monday and the bearish divergence on RSI, confirms a completion of the cycle.
The wave (4) ended around $13.31, which serves as a target for this week.
Resistance is at $13.97-1/4, a break above which could lead to a gain to $14.13.
Bearish divergence also formed on the daily RSI.
It is a more powerful signal than the one on hourly chart.
With the contract having briefly pierced below a support at $13.85-3/4, chances are it may fall to $13.49.
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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