CBOT soybeans may test resistance at $9.93

SINGAPORE: CBOT soybeans November contract may test a resistance at $9.93 per bushel, a break above which could lead to a gain to the next resistance at $9.98-3/4.

The contract has stabilized around a support zone of $9.84 to $9.85-1/4 per bushel, which is formed by the 50 percent Fibonacci retracement on the downtrend from the July 11 high of $10.47 to the Aug. 16 low of $9.21, and the 50 percent Fibonacci projection level of an upward wave C, the third wave of a three-wave cycle from $9.21.

This wave is capable of travelling to $10.18-1/4. It seems to have resumed. A drop below the Oct. 18 low of $9.81-3/4 could confirm both a break below $9.84 and a bearish target at $9.69.