SINGAPORE: The CBOT soybean November contract is poised to break a resistance at $13.66 per bushel and rise to $13.93.
The contract looks quite persistent in testing the resistance.
This could be due to an extension of the bounce from the July 6 low of $13.02-1/2. Driven by a wave c, the bounce may extend into a wide range of $13.93 to $14.36-3/4.
Support is at $13.47-1/4, a break could be followed by a drop into $12.95 to $13.22-1/4 range.
China’s soybean imports from Brazil fall in May, US shipments jump
On the daily chart, the two spinning tops on July 13 and July 14 symbolize a formation of a temporary bottom and a further consolidation in the range of $13.00-1/4 to $14.08-3/4.
It is not very clear if the bounce could extend to $14.08-3/4.
The current speculation is a triangle or wedge could be developing.
The downtrend from $15.84-3/4 is expected to resume upon the completion of the current bounce below $14.08-3/4.
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