CBOT soybeans to test resistance at $9.74

SINGAPORE: CBOT soybeans November contract is expected to test a resistance at $9.74 per bushel, with a good chance of breaking above this level and rising more towards the next resistance at $9.81-3/4.

The bounce from the Aug. 2 low of $9.43 consists of three waves, with the third wave labelled c travelling towards its 100 percent projection level at $9.74.

This wave could extend to $9.82-3/4, the 138.2 percent level, based on a consolidation within the range of $9.52-$9.67, formed by the 14.6 percent and the 38.2 percent Fibonacci retracements on the fall from the July 29 high of $10.06 to $9.43.

Support is at $9.65, the 61.8 percent projection level, a break below which could cause a loss to the 23.6 percent retracement at $9.57-3/4.