SINGAPORE: The CBOT soybean November contract may test a support at $14.36-1/2 per bushel, a break below which could open the way towards $14.22.
The drop from the Sept. 13 high of $15.08-3/4 looks so deep that it confirms a reversal of the uptrend from $13.73.
The drop is controlled by both a set of retracements on the fall from $15.84-3/4 and a set of projection levels on the rise from $13.73.
After sliding below the support at $14.52-1/4, the contract is heading towards the lower support at $14.36-1/2.
CBOT soybeans may retest support at $14.71-3/4
A break above $14.52-1/4, now a resistance, may lead to a gain to $14.71-1/2.
On the daily chart, the shooting star on Sept. 13 and the following big black candlestick confirmed a reversal of the uptrend from $13.73.
The trend could be a part of a big wave C from the August 3 low of $13.56.
Under this scenario, the whole uptrend from $12.88-1/2 may have completed. At a certain point of time, the low at $12.88-1/2 will be revisited.
Comments
Comments are closed.