SINGAPORE: The CBOT soybean November contract may retrace to $13.93-3/4, following its failure to break a resistance at $14.17-1/2.
In addition to the failure, the contract also broke a support at $14.08-1/2.
The next support will be at $13.93-3/4, a break below which may open the way towards $13.82.
Trending signals will remain mixed until the contract gets out of the range of $13.70 to $14.32-1/4.
A break above $14.08-1/2 could lead to a gain into $14.17-1/2 to $14.32-1/4 range.
On the daily chart, the contract faces a resistance at $14.14-1/2, the 23.6% projection level of a presumed wave C from $14.84-1/2.
This resistance is working with the one at $14.17-1/2 to stop the rise.
The tricky part of this rise is that it could be classified as a pullback towards a bearish wedge.
China Aug soybean imports plunge 25% on year
In the meantime, a morning star forming between Sept. 7 and Sept. 9 suggests a reversal of the downtrend.
Again, trending signals will become clearer when the contract gets out of the range of $13.71-1/4 to $14.14-1/2.
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