SINGAPORE: The CBOT soybean November contract may test a support at $14.02-1/4 per bushel, a break below could open the way towards $13.77.
The contract broke a rising trendline.
The break confirmed both a continuation of the downtrend from $14.84-1/2 and a reversal of the uptrend from $12.88-1/2.
The current fall is tentatively classified as the third leg of a correction from the July 29 high of $14.35-1/2, which together with the low of $13.56 forms a big neutral zone.
Resistance is at $14.30-3/4, a break above which could lead to a gain into $14.43-1/4 to $14.59 range. On the daily chart, the contract seems to be consolidating within a wedge.
CBOT soybeans may retest resistance at $14.43-1/4
Following its failure to break a resistance at $14.32-1/2, the contract is falling towards the support of $14.03-1/4.
A break below this support would confirm the wedge as a bearish pattern, which suggests a target of $13.56.
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