SINGAPORE: The CBOT soybean March contract may rise to $13.87 per bushel, as it has broken a resistance at $13.69-3/4.
The next resistance will be at $13.87. The strong bounce from the Tuesday low of $13.49-3/4 suggests a completion of the first part of a three-wave correction from $14.15.
The second part is expected to start around $13.87, as a head-and-shoulders has been confirmed, indicating a target at $13.19-1/4.
Pivotal support is at $13.55-1/4, a break below which may signal the continuation of the downtrend.
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On the daily chart, a retracement analysis reveals another support at $13.49, which triggered the current bounce towards $13.85-3/4, close to $13.87 (hourly chart).
However, the bearish divergence on RSI has not been fully discounted.
A rising channel also suggests a further fall towards $13.19-1/4.
The downtrend may resume upon the completion of the current bounce.
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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