SINGAPORE: The CBOT soybean November contract may end its shallow correction in a support zone of $13.69-$13.82 per bushel, and then retest a resistance at $14.02-3/4.

The sharp surge on Wednesday is subject to a shallow correction, which has been triggered by the resistance at $14.02-3/4.

A retracement analysis on the fall from $14.80 to $12.40-1/2 reveals a break above the 61.8% level of $13.88-1/2. The break has opened the way towards $14.80.

A break above $14.02-3/4 may lead to a gain into $14.24-1/2 to $14.36-3/4 range. On the daily chart, the contract is riding on a wave (5), which may extend above $14.80.

The sharp surge on Wednesday confirms this wave. Based on the current strong momentum, the high of $14.80 may be revisited soon.

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