SINGAPORE: The CBOT soybean November contract may break a support at $13.22-1/4 per bushel and fall towards the next support of $12.95.
The bounce caused by this support on July 13 has been almost reversed.
The reversal signals both a completion of the bounce from the July 5 low of $13.04 and the continuation of the downtrend.
A break below $13.22-1/4 will also confirm a wedge, which will suggest a target of $12.51-1/4.
Resistance is at $13.47-1/4, a break above could lead to a gain to $13.66.
On the daily chart, a pennant has been more or less confirmed, suggesting a much lower target of $11.24-1/4.
CBOT soybeans neutral in $13.66 to $13.93 range
A realistic target will be $13.00-1/4, which may trigger a bounce much weaker than the one from the July 5 low of $13.04.
The bounce will be classified as a pullback towards the pennant.
It may end around $13.25, a resistance established by the lower trendline of the pattern.