SINGAPORE: The CBOT soybean March contract may retest a support at $9.09-1/4 per bushel, a break below which could cause a loss to the next support at $9.02-1/4.
These supports are identified respectively as the 38.2 percent and the 23.6 percent projection levels of a wave C, the third part of a corrective cycle from $8.80-1/2.
This wave could have completed around a resistance at $9.38-1/2. The completion is indicated by the deep drop from the Feb. 1 high of $9.31-1/4.
On the daily chart, the contract failed to break a strong resistance zone of 9.21-3/4 to $9.27-3/4, which is 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. The failure could have caused a drop towards $8.90-1/4.
A break above $9.27-3/4 could open the way towards $9.47.
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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