SINGAPORE: CBOT soybean March contract may end its current weak bounce around the Jan. 11 high of $9.12-1/4 and then retest a support at $9.02-1/4.
The support is identified as the 38.2 percent retracement of the uptrend from $8.39-3/4 to $9.41. It temporarily stops a wave C from $9.27-3/4, which is capable of travelling into the range of $8.67-1/4 to $8.90-1/4, formed by its 100 percent and the 61.8 percent projection levels.
A rising trendline also indicates a target around $8.90-1/4. These two bearish targets, along with the sharp all from $9.27-3/4, strongly suggest that the current bounce may be weak and short-lived.
On the daily chart, the contract is biased to fall into the range of $8.87-1/2 to $8.98-3/4, which is suggested by a rising channel, following its failure to break a resistance at $9.22-1/4, the 86.4 percent projection level of an upward wave C.
A break above $9.13-1/4 could significantly alter the bearish readings.
* 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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