SINGAPORE: CBOT soybean May contract may retest a support at $8.62-3/4 per bushel, a break below which could cause a loss into the range of $8.48-1/2 to $8.55-3/4.
The support is provided by the 138.2 percent projection level of a downward wave C from $9.45. This wave is capable of traveling to $8.48-1/2. A realistic target could be $8.55-3/4.
The target zone of $8.48-1/2 to $8.55-3/4 will be confirmed when the contract falls below its April 23 low of $8.60-3/4. The current bounce triggered by the support at $8.62-3/4 may be limited to the Oct. 31, 2018 low at $8.71-1/2.
A closer look at the hourly chart reveals a similar limit at $8.66, the 23.6 percent retracement of the fall from $8.83-1/4 to $8.60-3/4. A rise above $8.71-1/2 may be capped at $8.76-3/4 (daily chart).
* Charts are not available in reports received in email box through "Alert". To get charts, use the news code of 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.
Comments
Comments are closed for this article.