SINGAPORE: The CBOT soybean July contract may surge more into a range of $8.96 to $9.09-1/2 per bushel, driven by a powerful wave 3.
This is the third wave of a five-wave cycle from the May 13 low of $7.91. It is capable of travelling to its 161.8% projection level at $9.09-1/2.
Based on its strong momentum, this wave is unlikely to be disrupted by any deep correction, until it reaches $9.09-1/2. A correction from the current level may be limited to $8.74-1/4.
On the daily chart, the contract broke two former resistances at $8.48-1/4 and $8.70-1/2 with the least effort. The strong bullish sentiment makes the next resistance at $8.92-1/2 look vulnerable. A break could open the way towards $9.20.
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** 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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