CBOT soybean March contract may end its current weak bounce around the January 11 high of $9.12-1/4 and then retest a support at $9.02-1/4.
The support is identified as the 38.2 percent retracement of the uptrend from $8.39-3/4 to $9.41. It temporarily stops a wave C from $9.27-3/4, which is capable of travelling into the range of $8.67-1/4 to $8.90-1/4, formed by its 100 percent and the 61.8 percent projection levels.
A rising trend line also indicates a target around $8.90-1/4. These two bearish targets, along with the sharp all from $9.27-3/4, strongly suggest that the current bounce may be weak and short-lived.
On the daily chart, the contract is biased to fall into the range of $8.87-1/2 to $8.98-3/4, which is suggested by a rising channel, following its failure to break a resistance at $9.22-1/4, the 86.4 percent projection level of an upward wave C. A break above $9.13-1/4 could significantly alter the bearish readings.
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