SINGAPORE: The CBOT soybean March contract may retest a support at $13.72 per bushel, a break below which could cause a fall into $13.31 to $13.56-1/4 range.
A five-wave cycle from $12.23-1/2 has completed, as confirmed by its wave structure and the deep fall triggered by the resistance at $14.13.
The wave (4) ended around $13.31, which serves as a target for this week.
A break above $13.97-1/4 may lead to a gain limited to $14.13, as the bearish divergence on RSI suggests an exhaustion of the uptrend.
Soybeans tick up, gains curbed by improved South American weather outlook
Bearish divergence also appeared on the daily RSI. When coinciding with the completion of a five-wave cycle, this indicator is more effective in suggesting a trend reversal.
The contract may consolidate around $13.85-3/4 before falling.
A strong gain towards the resistance at $14.11 is less possible.
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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