SINGAPORE: CBOT soybeans March contract is due for a sharp move, as its consolidation within a triangle is ending.
The consolidation has been narrowed into a range from $9.71-1/2 to $9.81-1/2, formed by the 14.6 percent and the 23.6 percent Fibonacci retracements on the fall from the Dec. 29, 2014 high of $10.68-1/4 to the Jan. 30 low of $9.55.
The triangle is a typical continuation pattern, which indicates a subsequent rise towards the 38.2 percent retracement at $9.98-1/4.
However, only a rise above $9.81-1/2 could confirm the target at $9.98-1/4.
A drop below $9.71-1/2 could open the way towards $9.55. Wang Tao is a Reuters market analyst for commodities and energy technical’s. 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.