SINGAPORE: The CBOT soybean March contract may break a support at $9.03-1/2 per bushel and fall towards the next support at $8.94-3/4, as suggested by a retracement analysis.
These supports are identified as the 61.8 percent and the 76.4 percent retracements of the uptrend from $8.80-1/2 to $9.41.
The drop from the Feb. 1 high of $9.31-1/4 looks incomplete. It followed the completion of a corrective cycle from $8.80-1/2. The second wave of cycle, the wave B, ended at the Jan. 16 low of $8.91-1/4, which may be approached, according to the wave theory.
Resistance is at $9.10-3/4, a break above which may lead to a gain to $9.17-3/4. On the daily chart, the contract seems to be falling towards $8.90-1/4, the 23.6 percent retracement on the downtrend from $10.54-1/2 to $8.39-3/4, as it failed to break a strong resistance zone of $9.21-3/4 to $9.27-3/4.
* 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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