SINGAPORE: The CBOT soybean March contract may retest a support at $14.90-3/4 per bushel, a break below which could open the way towards $14.80.
The deep drop from $15.37-1/2 seems to have adopted a five-wave mode.
The bounce triggered by the support at $14.90-3/4 was driven by the wave 4, which may end around $14.99-3/4 as it is expected to roughly match the wave 2.
The wave 5 is expected to travel below $14.90-3/4, towards $14.80.
The drop from $15.38-1/2 looks so deep that the uptrend from $14.62-1/4 may have reversed.
A rise to $15.02 could be extended to $15.08-3/4.
Argentina’s soya sales near 80pc of harvest, lag previous year
On the daily chart, the shooting star on Dec. 27, 2022, was the first signal of the uptrend exhaustion.
The big black candlestick on Tuesday confirmed the exhaustion.
Since the contract has broken the support at $15, it may test the next support of $14.75-1/2.