SINGAPORE: CBOT March soybeans are expected to peak around a resistance at $12.90 per bushel, and start a deep correction thereafter.
The resistance is jointly provided by the 50 percent Fibonacci retracement on the fall from the Aug. 31, 2011 high of $14.75-3/4 to the Dec. 14, 2011 low of $11.04-1/2, and the 100 percent Fibonacci projection level of an upward wave "c" target.
The 38.2 percent retracement at $12.46-1/4 once triggered a deep wave "b" fall after soybeans touched a high at $12.44-3/4 on Jan. 3. Similarly, the 50 percent level will exert a stronger resistance, probably ending the rise.
A break above $12.90 will open the way to $13.34, the 61.8 percent retracement level.
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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