SINGAPORE: The CBOT soyabean January contract may test a support at $12.65 per bushel, with a good chance of breaking below this level and falling to $12.42-1/4.
The sideways move over the past few days looks like a part of the fall from the Nov. 17 high of $12.89-1/4. Three waves make up this fall. So far only two waves have completed.
The wave c is unfolding towards $12.42-1/4. Only a break above $12.87-1/2 could confirm a continuation of the uptrend towards $13.01-3/4.
On the daily chart, the contract looks shaky around a resistance at $12.72-1/2. It is highly likely to drop towards $12.37-1/2, to complete a pullback towards a trendline.
Unless market closes above the Wednesday high of $12.81 on Friday, a rise towards $13.00-3/4 will be very unlikely.
Charts are not available in email received through “Alert”. To get charts, use the news code 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.
CBOT corn may retest a support at $5.76-1/2 per bushel, a break below which could cause a fall into $5.68-1/4 to $5.73-1/4 range.
The high volatility on Wednesday suggested a completion of a wave c from the Nov. 19 low of $5.68. This wave is a part of a corrective cycle from $5.47-3/4.
The wave b ended at $5.68, which works as a target. Resistance is at $5.81-1/2, a break above which could lead to a gain into $5.85-3/4 to $5.90 range.
On the daily chart, signals are rather mixed, as the contract has climbed above a wedge, but its performance over the past few days is much disappointing.
The sideways move could be interpreted as a preparation for a strong rally. It could be similarly regarded as a dissipation of the bullish momentum.
A close above $5.85-3/4 on Friday will be a bullish signal while a close below $5.76-1/2 could be bearish.
Charts are not available in reports received through “Alert”. To get charts, key in “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.