SINGAPORE: CBOT soybeans may rise to $11.67 per bushel this quarter, as suggested by a retracement analysis.
The contract has cleared a resistance at $10.19-3/4, the 23.6pc retracement of the downtrend from $17.94-3/4 to $7.80-1/2.
It is expected to rise towards the next resistance at $11.67-3/4.
The downtrend could be broken down into five waves.
This structure, along with the strong rally from $7.80-1/2, signals a reversal of the trend.
An inverted head-and-shoulders developing from July 13 has been confirmed, indicating a target around $11.00.
Strategically, the targets of $11 and $11.67-3/4 will be valid when the contract breaks the nearest resistance at $10.45, the 61.8pc retracement of the downtrend from $12.08-1/2 to $7.80-1/2.
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