SINGAPORE: The CBOT soybean November contract may test a resistance at $14.13-3/4 per bushel, a break above which could lead to a gain to $14.33-1/4 to $14.45-1/4 range.
The contract has managed to stabilize around a support at $13.82-1/2, and the lower trendline of a wedge. It may bounce towards the upper trendline.
The nature of the wedge remains unknown. It could turn out to be a bullish continuation pattern if the contract breaks $14.45-1/4, or a bearish pattern if the support at $13.82-1/2 is broken.
On the daily chart, the contract is presumed to be riding on a wave C, which observes a set of projection levels.
China soybean imports from Brazil fall in July, US imports up
The 38.2% and the 61.8% levels form a target zone from $14.52-1/2 to $14.99-3/4.
After the shallow correction on August 19, the contract is poised to break the resistance at $14.05-1/4 and rise towards $14.23-1/4.
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