SINGAPORE: The CBOT soybean November contract may retest a support at $13.65 per bushel, with a good chance of breaking below this level and falling towards $13.50-3/4.
The bounce triggered by the support at $13.50-3/4 had been driven by a wave 4, the fourth wave of a five-wave cycle from the Sept. 13 high of $15.08-3/4.
This wave seems to have completed. It will be reversed by the current wave 5.
Following a brief disruption by the support at $13.65, the contract approached this level again. It has a better chance of breaking this support and falling towards $13.50-3/4.
Resistance is at $13.88-1/4, a break above which may lead to a gain into $14.02-1/2 to $14.11-1/4 range.
CBOT soybeans may test support at $13.65
On the daily chart, the downtrend from $15.08-3/4 remains intact within a falling channel.
Only when the contract breaks above $13.95-3/4, could a reversal of the trend be considered.
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