CBOT soybeans may bounce further into $12.92-1/4 to $12.98-1/2 range

SINGAPORE: The CBOT soybean November contract may extend its gains into a range of $12.92-1/4 to $12.98-1/2, as it has broken a resistance at $12.85-1/4 per bushel.

A temporary bottom formed around a support at $12.71. It triggered the second pullback towards the neckline of a head-and-shoulders. The downtrend may resume, as the pattern indicates a target of $12.54-1/4.

A break below $12.77-1/2 may signal the continuation of the downtrend.

On the daily chart, the contract managed to maintain above a support at $12.74-3/4, which caused the second bounce that may be weaker than the one from the Aug. 20 low of $12.77-1/4.

Tentatively, a bounce target of $13.03-3/4 is established, which is above the target zone on the hourly chart.

A break above $13.03-1/4 is less likely.

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