TECHNICALS-CBOT soybeans may retest support at $11.78
SINGAPORE, March 10 (Reuters) - The CBOT soybean May contract SK26 may retest support at $11.78 per bushel; a break below that may trigger a fall toward $11.66-1/2.
The fall from $12.33-3/4 adopted an impulsive wave mode, consisting of five waves. The bounce triggered by the support at $11.78 seems to have been driven by wave 4, which will be reversed by a downward wave 5.
A further bounce from the current level may be limited to $11.96-1/2, which successfully stopped the first wave of the bulls' attack.
A break above $11.96-1/2 may lead to a gain to $12.06-1/4, based on the range from $11.78 to $11.96-1/2. On the daily chart, a big wave C from $10.50-1/2 could have completed around a key resistance at $12.39-3/4, as confirmed by a big black candle on Monday.
The market has broken a support at $11.95. It is expected to test the next support at $11.67-1/2.
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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