SINGAPORE: The CBOT soybean November contract may retest a support at $14.71-3/4 per bushel, a break below which may be followed by a shallow drop to $14.55-1/2 to $14.61-3/4 range.
The contract failed to break a resistance at $14.96-3/4.
The failure triggered a correction which was driven by a wave 4.
It is not very clear how deep this wave could travel.
Based on the strong surge on Monday, this wave may extend a bit to $14.55-1/2 to $14.61-3/4 range.
A break above $14.88-1/4 may lead to a gain into $14.96-3/4 to $15.04-1/2 range.
CBOT soybeans may retrace to $13.93-3/4
The uptrend remains intact, which consists of five waves.
The wave 5 may travel above $15.14-3/4. On the daily chart, a bullish pennant has failed, as suggested by the shooting star on Tuesday.
This candlestick pattern also suggests a further fall on Wednesday.
An aggressive target of $15.84-3/4 has been temporarily aborted.
It will be resumed when the contract breaks $15.14-3/4.
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