SINGAPORE: CBOT soybeans November contract is expected to test a resistance at $10.10-1/4 per bushel, a break above which will lead to a further gain to $10.35-1/4.
The resistance is identified as the 50 percent Fibonacci retracement on the fall from the July 29 high of $11.16-1/2 to the Oct. 1 low of $9.04, blocking the way towards the 61.8 percent retracement at $10.35-1/4.
Wave pattern suggests that soybeans are riding on a wave (c), which could at least travel a similar distance as the preceding wave (a), to arrive at $10.10-1/4. A drop from the current level may be limited to $9.85, the 38.2 percent level.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. The views expressed are his own.
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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