CBOT soyabeans to test resistance at $10.18-3/4

SINGAPORE: CBOT soybeans November contract may test a resistance at $10.18-3/4 per bushel, a break above which could lead to a gain to the next resistance at $10.36.

The contract is riding on a wave c, the third wave of a three-wave cycle from the Aug. 2 low of $9.43. A confirmed inverted head-and-shoulders indicates this wave could extend to $10.64-1/2, the 50 percent Fibonacci retracement on the downtrend from the June 13 high of $11.86-1/4 to $9.43.

A Fibonacci projection analysis on the target of the wave c reveals a resistance at $10.18-3/4, the 100 percent level, which blocks the way towards the 38.2 percent retracement at $10.36.

A correction from the current level could be limited to $10.00-1/2, the 23.6 percent level.