SINGAPORE: The CBOT soybean November contract may break a support at $8.70-1/4 per bushel and fall into the range of $8.56-1/2 to $8.65.
The support is identified as the 114.6pc projection level of a downtrend from $9.36-1/2. The trend is a part of five-wave cycle from the June 17 high of $9.48.
So far, only four waves have unfolded. The fifth wave labelled E is travelling towards a range of $8.34-1/2 to $8.43, as pointed by a falling trendline.
Resistance is at $8.78-3/4, a break above which could lead to a gain into the zone of $8.86-1/2 to $8.92-1/4.
On the daily chart, the contract is falling towards $8.66, the 61.8pc retracement on the uptrend from $8.15-1/2 to $9.48. A break below $8.66 could open the way towards $8.46-3/4.
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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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