SINGAPORE: The CBOT soybean November contract may break a resistance at $14.76-3/4 per bushel and rise into $15.00-1/4 to $15.29-1/2 range. The contract is riding on a wave C from $13.76-1/2.
This wave is expected to travel into a wide range from $15.00-1/4 to $15.77.
A wedge has been confirmed as a bullish continuation pattern, suggesting a target of $15.29-1/2.
A retracement analysis on the fall from $15.84-3/4 reveals a break above a resistance at $14.71-1/2, the 61.8% level.
The break increases the chance of a rise towards $15.84-3/4.
A drop from the current level will be regarded as a pullback towards the wedge.
CBOT soybeans may test resistance at $14.13-3/4
The pullback may end above $14.53. On the daily chart, a more bullish pennant has been confirmed, suggesting a target of $15.76-1/2.
Even though it is not very clear if the current rise is due to an extension of the uptrend, it is clear now that the June 9 high of $15.84-3/4 will be revisited.
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