SINGAPORE: The CBOT soybeans November contract may test a support at $8.48-3/4 per bushel, a break below which could cause a loss to the next support at $8.39-1/4.
These supports are identified respectively as the 76.4 percent and the 86.4 percent retracements of the uptrend from $8.26-1/4 to $9.22-1/4.
The drop from $9.22-1/4 is so deep that it extends below the key support at $8.62-3/4. Chances are this drop may totally reverse the uptrend from $8.26-1/4.
On the daily chart, another retracement analysis on the downtrend from $10.60-1/2 to $8.26-1/4 reveals that the contract has broken the support at $8.60-1/4, the 14.6 percent level. It is sliding towards $8.42-1/2.
A break above $8.62-3/4 (first chart) may open the way towards $8.74-1/4.
No information in this analysis should be considered as being business, financial or legal advice.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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