SINGAPORE: A bullish target at $10.47-1/4 per bushel remains unchanged for CBOT soybeans November contract as indicated by its wave pattern and a Fibonacci retracement analysis.
The gain from the Oct. 1 low of $9.04 followed the completion of a five-wave cycle that developed from the May 22 high of $12.79. A Fibonacci retracement analysis on the cycle reveals soybeans have cleared a resistance at $9.92-1/2, the 23.6 percent level and approached the next resistance at $10.47-1/4, the 38.2 percent level.
Another Fibonacci retracement analysis on the fall from the July 29 high of $11.16-1/2 to $9.04 confirms that the fall from the Oct. 28 high of $10.34-1/2 was a pullback towards $10.10-1/4, the 50 percent level. The short uptrend from $9.04 remains steady.
** 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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