CBOT soybeans to retest resistance at $9.83

28 Jan, 2015

SINGAPORE: CBOT soybeans March contract is expected to retest a resistance at $9.83 per bushel, following a completion of a five-wave cycle that developed from the Jan. 8 high of $10.62.

A further reversal of the cycle is much anticipated. The cycle is a part of a bigger wave C that started at the Dec. 29, 2014 high of $10.68-1/4. A Fibonacci projection analysis on the target of the wave C reveals the resistance at $9.83, the 86.4 percent level, which has temporarily stopped the rebound from the Jan. 26 low of $9.67.

A break below $9.69-1/2, the 100 percent level, could cause a further loss to $9.55, the 114.6 percent level.

Copyright Reuters, 2015

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