TECHNICALS-CBOT soybeans may rise to $12.33-3/4
SINGAPORE, March 12 (Reuters) - The CBOT soybean May contract SK26 may break a resistance at $12.26 per bushel and rise to $12.33-3/4.
The gain from the Tuesday low of $11.77-3/4 is classified as a continuation of the uptrend, which is supposed to extend above $12.33-3/4.
Support is at $12.12-1/4, a break below which may trigger a drop into the $11.99-1/4 to $12.05-3/4 range. Such a deep drop would raise some doubt on the bullish outlook.
On the daily chart, the contract has climbed above a resistance at $12.14 again. It may briefly rise to $12.39-3/4 before reversing the uptrend, as this 100% projection level of a wave C is considered a major barrier.
This wave may either end around $12.39-3/4 or extend far above it. Given that the uptrend from $10.50-1/2 looks too linear to sustain, a deep correction may occur around $12.39-3/4.
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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