SINGAPORE: Signals are mixed for CBOT soybean March contract, as it is stuck in a neutral range of $9.14-3/4 to $9.27-1/4 per bushel.
The range is formed by the 50 percent and the 76.4 percent projection levels of an upward wave C from $8.91-1/4. After travelling above $9.20-1/4, this wave has a better chance of extending to $9.38-1/2.
However, the longer the contract stays within the range, the more doubtful it rises towards $9.38-1/2. A break below $9.14-3/4 could cause a loss into the range of $9.02-1/4 to $9.09-1/4, while only a break above $9.27-1/4 could confirm the extension of the wave C towards $9.38-1/2.
On the daily chart, the contract looks shaky below a resistance zone of $9.21-3/4 to $9.27-3/4, formed by the Jan. 7 high and the 38.2 percent retracement on the downtrend from $10.54-1/2 to $8.39-3/4. Unless it could break this zone soon, it may fall towards $8.90-1/4.
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of TECH/C to retrieve the original reports.
** 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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