SINGAPORE: The CBOT soybean November contract is biased to break a support at $8.65 per bushel and fall to $8.56-1/2.
The support is provided by the 123.6% projection level of a wave C from $9.36-1/2. This wave is unlikely to end around $8.56-1/2. It may eventually travel to $8.43, which is suggested by a pennant as well.
The bounce triggered by the support at $8.56-1/2 may end below $8.74-1/2. Even if the wave C has completed around $8.56-1/2, the reversal of the downtrend from $9.48 may not be confirmed until a double-bottom or high-low bottom forms.
A break above $8.74-1/2 could lead to a gain to $8.86-1/2.
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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. **