SINGAPORE: The CBOT soybean November contract may retreat to $12.24-1/2 per bushel, as it failed to break a falling trendline again.

The contract may drop more to accumulate the needed momentum for retesting this line. It is riding on a wave c, which may travel to $12.81.

The anticipated drop is classified as a shallow correction against the wave c, instead of an extension of the fall from the Oct. 21 high of $12.49-1/2.

Only a break below $12.24-1/2 could signal either the extension of the fall, or a continuation of the downtrend from $13.79-3/4.

On the daily chart, a doji forming around $12.40 on Tuesday suggests a failure of the contract to break this resistance.

The contract may fall towards $12.16.

A rise above the Tuesday high of $12.46-1/4 could confirm a break and a target of $12.74-3/4.

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