CBOT soybeans neutral within $13.64-$13.96/bushel
SINGAPORE: CBOT soybeans July contract will be technically neutral so long as it remains within a range of $13.64-$13.96 per bushel.
A fall below the support at $13.64 will confirm a temporary top at $13.96, and a bearish target at $13.31 will be established.
On the other hand, a rise above $13.96 will open the way to $14.10-1/2, the 61.8 percent Fibonacci projection level of a presumed wave "3", based on the length of the wave "1" which started from $13.12-1/4 and ended at $13.87-1/2.
The consolidation is taking longer than expected and the current uptrend may not be as firm, indicating a possible downside bias.
Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
COPYRIGHT REUTERS, 2011
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