SINGAPORE: CBOT soybean November contract may break a support at $13.85-1/4 per bushel and fall towards the August 3 low of $13.56.
The contract has broken a rising trendline and completed a pullback towards it.
The break signals a reversal of the uptrend from $12.88-1/2.
There might not be any strong support until the contract reaches $13.56.
A break above $14.03-1/4 could lead to a gain to $14.32-1/2.
Soybeans drop 2% on US crop forecast, weather; corn, wheat down
On the daily chart, the fall from $14.64-3/4 seems to be riding on a wave c, which is a part of the correction from the July 29 high of $14.89.
This wave may travel to $13.31-3/4.
Even though the 61.8% projection level generally works as a strong support, in case of soybeans, the support at $13.82-1/2 simply looks vulnerable, in terms of the current strong bearish momentum.
Comments
Comments are closed for this article.