SINGAPORE: The CBOT soybean March contract may test a resistance at $16.02-3/4 per bushel, a break above which could lead to a gain to $16.27-1/4.
The correction triggered by the resistance at $16.02-3/4 fell short of its target of $15.32.
The strong recovery of the price from the Tuesday low of $15.42-1/4 suggests a continuation of the uptrend.
The trend is riding on a wave V-5, which is expected to travel above $16.27-1/4.
CBOT soybeans may retest support at $15.53-1/2
Support is at $15.72-1/4, a break below which could open the way towards $15.53-1/2.
On the daily chart, the big white candlestick on Wednesday confirmed a completion of the correction from $16.33.
The contract may revisit this high, as the uptrend from $13.94 looks incomplete.
Strategically, the target of $16.33 will be confirmed when the contract breaks a resistance at $15.96-1/4.
A failure to break this level could be followed by a drop towards $15.73-3/4 or $15.37-1/4.
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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