CBOT soybeans may retest support at $13.42

SINGAPORE: The CBOT soybean November contract may retest a support at $13.42-1/2 per bushel, a break below which could cause a fall to $13.24-3/4. The support is provided by the 61.8% projection level of a downward wave C from $14.18. This is the third wave of a presumed flat from $14.23.

This wave is expected to travel to $12.96. The bounce triggered by the support at $13.24-3/4 seems to have completed. The wave C has resumed. A break above $13.57 may lead to a gain to $13.71-1/4. On the daily chart, the consolidation within a triangle continues towards $13.33-1/2. Signals on the hourly chart suggest a break below this level. The break could confirm this bearish pattern, which will then indicate a target around $11.87-1/4.