TECHNICALS-CBOT soybeans neutral with downside bias

SINGAPORE, March 5 (Reuters) - The CBOT soybean May contract SK26 looks neutral in a narrow range of $11.65 to $11.76-1/4 per bushel, and an escape could suggest a direction.

The range falls within a bigger neutral zone of $11.58 to $11.83, mostly defined by the price fluctuations on March 2 and March 3. Signals look quite tricky when the market seems to have lost its momentum but refuses to drop deeply.

A break above $11.76-1/4 may not trigger an impressive gain, while a break below $11.65 may open the way toward $11.46-3/4. The bias might be to the downside, as suggested by bearish divergence in the hourly MACD.

On the daily MACD, a death cross is forming, which also suggests a downside bias. However, this indicator is sometimes very lagged. Even a death cross may not be very reliable.

A further development of the chart is needed to evaluate the next direction.

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.

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