SINGAPORE: The CBOT soybean July contract may break a support at $8.21 per bushel and fall to $8.02-1/4.
The support is provided by the 76.4% projection level of a downward wave C from $9.64-1/4. The contract failed twice to break a resistance at $8.48-1/4.
The two failures suggest a completion of the bounce from the May 13 low of $7.91, or the first round of the bounce. The wave C has a maximum target at $7.76-3/4, which was narrowly missed.
With the bounce having more or less completed, the contract is likely to approach $7.76-3/4 again. On the hourly chart, a retracement analysis on the uptrend from $7.91 to $8.48-1/4 reveals a resistance at $8.26-1/4, a break above which could lead to a gain into the range of $8.34-1/2 to $8.39-3/4.
* 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.