SINGAPORE: The CBOT soybean November contract may drop into a range of $13.56 to $13.70 per bushel, as the support at $13.85-1/4 does not seem to hold.
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.
Even though it is not very clear how deep the current fall would be, the Aug. 3 low of $13.56 looks like a target.
CBOT soybeans may fall towards August 3 low of $13.56
The bounce triggered by the support at $13.85-1/4 proved weak.
It has almost been reversed. Unless the contract unexpectedly breaks $14.03-1/4, it is expected to fall towards $13.56.
On the daily chart, the fall from $14.64-3/4 is riding on a wave c, which is a part of the correction from the July 29 high of $14.89.
This wave may either end around $13.82-1/2 or travel to $13.31-3/4.
The mild reaction of the market to the support at $13.82-1/2 suggests an extension of the wave c towards $13.31-3/4.
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