SINGAPORE: The CBOT soybean November contract is expected to retest a support at $9.00-3/4 per bushel, a break below which could cause a fall to $8.92-1/4.
The support is identified as the 61.8% projection level of a downward wave C from $9.36-1/2. The bounce triggered by this support looks like a pullback towards a rising trendline. The pullback may have ended around a resistance at $9.07-1/2.
A fall to $8.98 could confirm a break below $9.00-3/4. A break above $9.07-1/2 may lead to a gain into the range of $9.14-1/4 to $9.22-3/4.
On the daily chart, the contract is temporarily hovering above a support at $8.97-1/4, the 38.2% retracement on the uptrend from $8.15-1/2 to $9.48. A break could open the way towards $8.81-3/4.
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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. **