CBOT soybeans may retrace into $11.17-3/4 to $11.22-1/2 range before rising
- For more technical analyses, please clickTECH/C
The CBOT soybean January contract (SF26) may retrace into a range of $11.17-3/4 to $11.22-1/2 per bushel, before retesting resistance at $11.35-3/4.
The contract failed to break the strong resistance at $11.35-3/4. That suggests the completion of a five-wave cycle from the October 29 low of $10.70-1/2.
The completion of this cycle does not necessarily mean a reversal of the whole uptrend from $10.18-3/4. A break above $11.35-3/4 could lead to a gain to $11.44.
On the daily chart, a projection analysis on the uptrend from $10.18-3/4 reveals a target zone of $11.51-3/4 to $11.77-3/4.
The correction triggered by the resistance at $11.35-3/4 may be limited to the support zone of $11.17-1/2 to $11.26.
* 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.