SINGAPORE: The CBOT soybean November contract may retest a resistance at $13.36-3/4 per bushel, a break above which could lead to a gain to $13.43.

The contract is riding on a wave c, which consists of five smaller waves. The wave 4 is expected to end around $13.19-1/4, to be reversed by the wave 5.

A break below $13.19-3/4 may cause a fall to $13.10. The downtrend is supposed to resume when the wave 5 ends in the range of $13.36-3/4 to $13.43.

On the daily chart, a morning star formed. This bullish reversal pattern suggests a further rise. Bulls are advised not to take much fancy to the following gains, as a downward wav c from $14.18 looks incomplete.

This wave could travel to $11.78-1/2. At least, it could fulfil its minimum target of $12.69-3/4. It may resume when the current bounce ends below $13.61-1/4.

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