SINGAPORE: CBOT soybeans March contract looks neutral in a range of $9.71-1/2 to $9.81-1/2 per bushel, and an escape will point a direction.
The range has been formed by the 14.6 and the 23.6 percent Fibonacci retracements on the fall from the Dec. 29, 2014 high of $10.68-1/4 to the Jan. 30 low of $9.55 per bushel.
A rise above $9.81-1/2 could signal the extension of the rebound from $9.55, towards the 38.2 percent retracement at $9.98-1/4, while a break below $9.71-1/2 could cause a further loss to $9.55.
Strategically, the target at $9.55 could only be confirmed when soybeans fall to $9.65.
Wang Tao is a Reuter’s market analyst for commodities and energy technical’s.
The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice.
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