TECHNICALS-CBOT soybeans may revisit Tuesday low of $11.77-3/4
SINGAPORE, March 11 (Reuters) - The CBOT soybean May contract SK26 may revisit its Tuesday low of $11.77-3/4 per bushel, following its failure to break a resistance at $12.39-3/4.
The failure suggests the completion of a wave C from $10.50-1/2, which will be deeply reversed by a correction. The first round of the correction has ended at $11.77-3/4.
The second round would extend far below this level. A break above $12.14, however, could lead to a gain to $12.39-3/4. On the hourly chart, the market may retrace into a range of $11.91 to $11.99-1/4, as it faces a strong resistance at $12.12-1/4.
The bounce from $11.78 might have been driven by a wave (b), the second wave of a three-wave cycle from $12.33-3/4. This wave could hardly extend above $12.12-1/4, as it looks like a part of a zigzag from $12.33-3/4.
The third wave, the wave (c) may have started, unfolding towards $11.78.
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.
tech
tech
