SINGAPORE: The CBOT soybean January contract is biased to retest a support at $8.99-3/4 per bushel, a break below which could cause a loss into the range of $8.85 to $8.91-3/4.
The support is identified as the 76.4 percent projection level of an upward wave C from $8.57. The bounce triggered by this support is very disappointing. It failed to extend to a resistance at $9.13-1/4.
The weakness of the bounce suggests a prevailing bearish sentiment. A rise above $9.07-3/4 would signal an extension of the bounce towards $9.13-1/4.
On the daily chart, after failing to break a resistance at $9.16-3/4, the contract has a better chance of falling to $8.82, which is suggested by a rising channel as well.
* Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. 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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