SINGAPORE: The CBOT soybean November contract may test a resistance at $14.96-3/4, a break above may lead to a gain into $15.04-1/4 to $15.14-1/2 range.
The big surge of the price on Monday confirms a wave (C) from $13.73, which is expected to travel into a wide range of $14.96-3/4 to $15.73-1/2. Based on its strong momentum, the wave (C) is unlikely to end around $14.96-3/4.
Instead, it may extend a lot to $15.73-1/2.
A retracement analysis on the fall from $15.84-3/4 suggests a further gain to $15.14-3/4, as the key barrier at $14.71-1/2 has been broken.
CBOT soybeans may retrace to $13.93-3/4
However, resistance such as $14.96-3/4 should not be ignored, while the ambitious bullish targets are fixed.
A failure to break $14.96-3/4 may be followed by a correction towards $14.78.
A correction from the current level may be limited to $14.71-3-3/4.
On the daily chart, a bullish pennant has been confirmed, suggesting a target of $15.84-3/4.
A retracement analysis on the downtrend from $15.84-3/4 also suggests a further gain towards this level, as the 61.8% retracement has been broken.
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