SINGAPORE: The CBOT soybeans November contract may break a support at $10.00-1/2 per bushel and fall more to the next support at $9.90-1/2, as it failed to break a resistance at $10.18-3/4.
The resistance is provided by the 100 percent Fibonacci projection level of an upward wave c, the third wave of a three-wave cycle from the Aug. 2 low of $9.43. It has caused a correction towards the 50 percent level at $9.90-1/2.
A Fibonacci retracement analysis on the downtrend from the June 13 high of $11.86-1/4 to $9.43 reveals a higher support at $10.00-1/2, the 23.6 percent level, which has temporarily blocked the way towards $9.90-1/2.
The current drop is regarded as a pullback towards the neckline of an inverted head-and-shoulders, which suggests a target at $10.64-1/2, the 50 percent retracement
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