TECHNICALS-CBOT soybeans may test resistance at $12.39-3/4
SINGAPORE, March 9 (Reuters) - The CBOT soybean May contract SK26 may test a resistance at $12.39-3/4 per bushel, a break above which could lead to a gain to $12.67-1/2.
The contract is riding on a wave C from $10.50-1/2, the third wave of a three-wave cycle from $9.91-3/4. This wave looks exceptionally strong, as it has never been disrupted by a decent correction.
Given that this wave may either end around $12.39-3/4 or extend to $13.56-3/4, it may fail to travel above $12.39-3/4 in its first attempt, as a correction is likely to occur around this level.
The depth of the correction remains unclear. The support at $12.14 seems to be a possible target.
On the hourly chart, the linear rise poses a big challenge to the calculation of the intraday targets.
A projection analysis with a starting point of $11.57-1/2 reveals a target zone of $12.38 to $12.41-3/4, which engulfs the resistance of $12.39-3/4 on the daily chart.
Immediate support is at $12.25-1/4, a break below which may trigger a drop into $12.18-1/2 to $12.22 range.
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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