SINGAPORE: CBOT soybeans March contract may retrace more to $9.98-1/4 per bushel, as it has cleared support at $10.11-1/2.
The support was at the 50 percent Fibonacci retracement on the fall from the Dec. 29 high of $10.68-1/4 to the Jan. 30 low of $9.55 per bushel. The next support will be at $9.98-1/4, the 38.2 percent level.
The gain from $9.95 seems to have been confined within a rising wedge, which may have completed around resistance at $10.25, the 61.8 percent retracement, as all its five component waves have unfolded.
A rise above $10.11-1/2 will make signals neutral.
Wang Tao is a Reuter’s market analyst for commodities and energy technical. 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.