SINGAPORE: The CBOT soybean March contract may revisit its Jan. 14 high of $14.35-3/4 per bushel, as a short downtrend from this level may be totally reversed.

A retracement analysis on the fall from $14.35-3/4 to $12.98 reveals a break above a key resistance at $13.83, the 61.8% level.

This break is regarded as a convincing signal that the downtrend will be completely reversed. A drop to $13.78 could suggest the break was false, and the target has to be temporarily aborted.

On the daily chart, the correction from $14.36-1/2 is sharp but very shallow, as it is against the uptrend from $8.75. Only 23.6% of the trend was reversed. The swift recovery of the price from the Jan. 25 low of $12.98 strongly suggests a resumption of the uptrend.

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