SINGAPORE: The CBOT soybean January contract remains neutral in a range of $12.41-1/4 to $12.58 per bushel, but the bias grows stronger towards the downside.
The range is formed by the 23.6% and the 50% projection levels of an upward wave c which may have ended around $12.65-14.
After briefly piercing above $12.65-1/4, the contract has never been able to approach this level again.
The consolidation is taking the shape of a triangle, which is unlikely to turn into a bullish continuation pattern, in consideration that the contract failed a few times to break a falling trendline.
On the daily chart, the rise from $11.96 could be regarded as a pullback towards the June 17 low of $12.45.
A falling channel suggests a steady downtrend which may resume, driven by a wave v.
The market could be short of one final drop to complete the downtrend.
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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