CBOT soybeans to bounce to $9.97-1/4
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The CBOT soybean May contract (SK25) is likely to bounce to $9.97-1/4 per bushel, driven by a wave e.
The bounce triggered by the key support at $9.71-1/2 is taking the shape of a rising wedge, which could consist of five waves. The current wave e is expected to travel to $9.97-1/4.
Support is at $9.83, a break below could cause a drop into $9.71-1/2 to $9.78-3/4 range. On the daily chart, the contract found strong support at $9.72, the 61.8% projection level of a wave c from $10.34-3/4.
The current bounce is classified as a pullback towards resistance at $9.96 and a wedge. It may end around $9.96.
* 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.
