SINGAPORE: CBOT soybeans November contract will fall back to Monday's low of $12.26 per bushel, as a downtrend has resumed.
The downtrend started at the Aug. 31 high of $14.65, and has adopted a five-wave mode, with the rebound during the previous trading session labeled as a wave (4) and the current drop a wave (5).
The confirmation of a resumption of the downtrend comes from the failure of the contract to break above $12.79-1/4, the 23.6 percent level Fibonacci retracement on the fall from $14.52 to $12.26.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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