CBOT soybeans may slide more into $13.00-3/4 to $13.07-1/4 range

The CBOT soybean January contract (SF24) may slide more into a range of $13.00-3/4 to $13.07-1/4 per bushel, as a bounce from the Dec. 7 low of $12.92 has completed.

The bounce consists of three waves. The wave b ended around $13.00-3/4, which works as a target. The deep fall from the Dec. 12 high of $13.44 is classified as a continuation of the downtrend from the Nov. 15 high of $13.98-1/2.

Resistance is at $13.27-1/4, a break above which could open the way towards $13.34-1/2. On the daily chart, the rise from the Dec. 7 low of $12.92 seems to have ended around a resistance zone of $13.33-1/4 to $13.35-1/4.

The bounce over the past few days could be viewed as a pullback towards a rising trendline. With this pullback having completed, the downtrend is expected to extend towards $12.70-1/4.

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** 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.