CBOT soybeans to fall into $10.16-3/4 to $10.26-1/4 range
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The CBOT soybean July contract (SN25) is expected to break support at $10.36 per bushel, and fall into $10.16-3/4 to $10.26-1/4 range.
The bounce from the May 8 low of $10.36-1/2 ended around resistance at $10.48. It is considered the final effort of bulls to maintain the price above the support at $10.36.
This barrier has triggered three bounces ever since the contract touched the May 1 low of $10.36-3/4. It is observed that the second and the third bounces became weaker.
The relation suggests a dissipation of the bullish momentum and a prevailing bearish sentiment. A break above $10.48 may lead to a gain into $10.55-1/2 to $10.61-1/2 range.
On the daily chart, the contract is more likely to break the support at $10.38-1/2, than to break the resistance at $10.55 and rise toward $10.71-1/2, as it has been remaining around $10.38-1/2 for a few days.
* 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.
