SINGAPORE: The CBOT soybean November contract may end its bounce below a resistance at $13.62-1/2 per bushel, and revisit its July 6 low of $13.02-1/2.
The downtrend from the June 30 high of $15.07-3/4 has adopted a five-wave mode.
The bounce triggered by $13.06-1/2 has been driven by a wave 4, which is shaped into an expanding wedge.
This wave will be reversed by a wave 5.
The wedge looks like a continuation pattern, to be followed by a drop as well.
CBOT soybeans may fall into $13.67-1/4 to $13.77-1/4 range
A break above $13.62-1/2 could lead to a gain into $13.74 to $13.92-1/4.
On the daily chart, a retracement analysis reveals a support at $12.99-3/4, which contributed a lot in triggering the current bounce.
It is doubtful that the bounce could extend to $14.08-1/2. Most likely, it would end around $13.73-3/4, the open price of a big black candlestick on July 5.
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