SINGAPORE: The CBOT soybean January contract may fall to $13.81 per bushel, as it has broken a support at $13.90.
The consolidation from the Oct. 6 low of $13.62-1/4 has been shaped into a wedge, the lower trendline of which points at a target of $13.71.
The immediate target is $13.81.
The wedge looks like a bearish continuation pattern, to be followed by another round of drop deep as the one from the Sept. 13 high of $15.12-1/4.
Resistance is at $13.97-1/4, a break above which could lead to a gain into a range of $14.04-1/4 to $14.13-1/4.
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On the daily chart, the contract is riding on a wave C from $15.12-1/4, which is capable of travelling to $13.32-1/2.
Following its repeated failures to break a resistance at $14.01, the contract may drop towards $13.67.
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