TECHNICALS-CBOT soybeans may retest support at $11.58

SINGAPORE, March 4 (Reuters) - The CBOT soybean May contract SK26 might retest support at $11.58 per bushel, a break below which could open the way toward $11.46-3/4.

Following its two failures to break through resistance at $11.83, the market is more likely to retest the support at $11.58, given that a five-wave cycle from $10.51-1/4 might be ending, and bearish divergence has formed on the hourly MACD.

Under extreme circumstances, the contract may unexpectedly rise. However, such a scenario will only be considered when the market breaks $11.83.

On the daily chart, a dark cloud cover formed between Feb. 27 and March 2, followed by a shooting star on Tuesday. The rally from $10.50-1/2 seems to be very exhausted.

With all these reversal signals coming out, a drop toward $11.45-1/4 would be more likely than a rise towards $11.95.

Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own.

No information in this analysis should be considered as being business, financial, or legal advice. Each reader should consult their own professional or other advisers for business, financial, or legal advice regarding the products mentioned in the analyses.

​

​

​