CBOT soybeans may fall into $9.86-1/4 to $9.90-1/4 range
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The CBOT soybean January contract (SF25) may fall into a range of $9.86-1/4 to $9.90-1/4 per bushel, as a bounce triggered by the support at $9.86-1/4 has completed.
The contract may retrace to either the bottom of the wave b around $9.90-1/4 or the starting point of the wave a, around $9.86-1/4.
Resistance is at $9.96-1/2, a break above which could open the way towards $10.02-3/4 to $10.05-1/2 range. On the daily chart, signals look neutral as the market is stuck in a range of $9.83-1/2 to $10.27-3/4.
The bias seems to be towards the downside. A break below $9.83-1/2 will not only trigger a drop towards $9.39-1/2 but also confirm a bearish wedge which suggests a lower target around $8.80.
* 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.