Friday, 28 August 2015 10:47
SINGAPORE: CBOT soybeans November contract faces resistance at $ 8.88-1/2 per bushel, a break above which could lead to a gain to the next resistance at $ 9.09.
These resistances are identified respectively as the 23.6 percent and the 38.2 percent Fibonacci projection levels on the fall from the Aug. 10 high of $ 9.96-1/2 to the Aug. 24 low of $ 8.55.
The bounce from $ 8.55 consists of three waves, with the current wave c likely to travel a similar distance as the first wave labeled a, to arrive at $ 8.99. Theoretically, soybeans will have a better chance of rising to $ 9.09 if it climbs to $ 8.99.
Support is at $ 8.75-1/2, the 14.6 percent level, a break below which could lead to a loss to $ 8.55.
