SINGAPORE: The CBOT soybeans November contract may test a resistance at $9.08 per bushel, a break above which could lead to a gain to the July 31 high of $9.22-1/4.
The resistance is provided by the 14.6 percent retracement on the uptrend from $8.26-1/4 to $9.22-1/4. The contract seems to have completed the correction from $9.22-1/4 around a support at $8.85-1/2.
After failing to stand firm above $8.99-1/2 on Aug. 6, the contract climbed above this level again. Chances are high for it to rise into the range of $9.08 to $9.22-1/4.
A retracement analysis on the downtrend from $10.60-1/2 to $8.26-1/4 reveals a range from $8.81-1/2 to $9.15-1/2, formed by the 23.6 percent and the 38.2 percent levels. The contact may keep on consolidating within the range by rising towards $9.15-1/2.
A drop to $8.96 could be extended to $8.85-1/2.
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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