CBOT soybeans may retest support at $10.40-1/2

SINGAPORE: CBOT soybeans November contract may retest a support at $10.40-1/2 per bushel, a break below which could cause a loss to the next support at $10.21.

These supports are identified respectively as the 50 percent and the 61.8 percent Fibonacci projection levels of a downward wave C, the third wave of a three-wave cycle from the June 13 high of $11.86-1/4.

At its full capacity, this wave could travel to $9.57-3/4, the 100 percent projection level. Resistance is at $10.59-/4, the 38.2 percent level, a break above which could lead to a gain to $10.84, the 23.6 percent level.