SINGAPORE: The CBOT soybean May contract may test a resistance at $17.31 per bushel, a break could lead to a gain to $17.44-3/4.
A retracement analysis on the uptrend from $15.76-3/4 marks a support at $16.88-1/4, around which, the correction from $17.57-1/2 or its first part, may have completed.
The correction was largely due to a resistance at $17.59-1/4, the February high.
It could be a preparation for retesting the resistance.
However, whether the sharp drop is deep enough to complete around $16.88-1/4 remains a mystery, as the correction could develop into three waves as well.
CBOT soybeans may test support at $16.98
The immediate task of the contract could be pulling back towards a rising trendline resistance around $17.31.
On the daily chart, a confirmed bullish wedge temporarily became invalid, due to the deep drop below the upper trendline.
A rise above $17.39-1/2 would make this pattern valid again.
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