SINGAPORE: The CBOT soybean March contract may test a support at $13.56-1/4 per bushel, a break below which could cause a fall into $13.38-1/2 to $13.46-1/2 range.
The correction from the Jan. 7 high of $14.15 may extend to the bottom of a wave (4) around $13.38-1/2. Three waves make up the correction. The wave c is unfolding towards the target zone.
Resistance is at $13.72, a break above which could lead to a gain to $13.84-3/4.
On the daily chart, the bearish divergence on RSI works effectively.
CBOT soybeans target $14.13 to $14.23-3/4 range
This is a powerful reversal signal. A retracement analysis suggests a further fall towards $13.19-1/4 to $13.49 range.
A rising channel points at $13.19-1/4 as well.
Once the contract drops to $13.19-1/4, the uptrend from $11.93 will be classified as a part of a correction from $14.45-1/2.
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