SINGAPORE: The CBOT soybean March contract may break a resistance at $13.56-1/4 per bushel, and rise towards a range of $13.72 to $13.97-1/4.
The contract is riding on a wave C, which has travelled far above $13.31, the 100% projection level. It is extending towards a zone of $13.72 to $13.97-1/2.
Support is at $13.46-1/2, a break below which could cause a fall into a range of $13.31 to $13.38-1/2. On the daily chart, a retracement analysis reveals a resistance at $13.49, the 61.8% level, which has been broken.
The break opened the way towards $13.85-3/4.
The pattern from the Oct. 13 low of $12.06 to the Nov. 30 low of $12.24 is recognised as an inverted head-and-shoulder, which has been confirmed.
The pattern indicates a target of $13.85-3/4.
A close below $13.49 on Monday could signal the break above this level was false.
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