Friday, 31 July 2015 15:23
SINGAPORE: CBOT soybeans November contract is biased to fall to a support at $ 9.30-3/4 per bushel, as it failed to break a resistance at $ 9.52-3/4.
The resistance is provided by the 61.8 percent Fibonacci retracement on the rise from the June 15 low of $ 8.95-3/4 to the July 14 high of $ 10.45. No matter how hard the contract had tried, it still failed to break this resistance. It seems the market sentiment remains very cautious.
The bounce from the July 27 low of $ 9.31-3/4 has been shaped into a flag, which could be a typical bearish continuation pattern. In addition, wave pattern suggests the contract is riding on a wave C, which could travel to $ 9.20, its 161.8 percent Fibonacci projection level.
A rise to $ 9.60 could confirm a break above the resistance and the 50 percent level at $ 9.70-1/4 will be targeted then.
