SINGAPORE: The CBOT soybean November contract may retreat to $12.24-1/2 per bushel, as it failed to break a falling trendline again.
The contract may drop more to accumulate the needed momentum for retesting this line. It is riding on a wave c, which may travel to $12.81.
The anticipated drop is classified as a shallow correction against the wave c, instead of an extension of the fall from the Oct. 21 high of $12.49-1/2.
Only a break below $12.24-1/2 could signal either the extension of the fall, or a continuation of the downtrend from $13.79-3/4.
On the daily chart, a doji forming around $12.40 on Tuesday suggests a failure of the contract to break this resistance.
The contract may fall towards $12.16.
A rise above the Tuesday high of $12.46-1/4 could confirm a break and a target of $12.74-3/4.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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