SINGAPORE: The CBOT soybean November contract may retest a support at $14.30-3/4 per bushel, a break below which could open the way towards $14.02-1/4 to $14.18 range.
The deep fall on Thursday suggests a reversal of the uptrend from $13.77.
A rising trendline points at a target of $14.02-1/4. A retracement analysis on the fall from $15.84-3/4 to $12.88-1/2 reveals a strong resistance at $14.71-1/2, which stopped the rise three times.
It becomes unrealistic to expect the contract to make its fourth attempt.
Resistance is at $14.43-1/4, a break above which could lead to a gain into $14.56 to $14.71-1/2 range.
CBOT soybeans may retest resistance at $14.76-3/4
On the daily chart, a bullish pennant has been violated, thanks to the deep fall on Thursday.
Only if the contract could stabilize around a support at $14.23-1/4 and break the resistance at $14.52-1/2, would the pattern be reconsidered.
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