SINGAPORE: The CBOT soybean November contract is biased to test a resistance at $13.47-1/4 per bushel, a break above which could lead to a gain to $13.66 to $13.93 range.
Signals are a bit mixed after the contract failed to climb into a wedge.
The failure suggests that the rise from the July 22 low of $12.88-1/2 could be indeed a pullback towards the pattern.
However, the bullish divergence on the hourly RSI sends a conflicting signal, indicating an extension of the bounce.
CBOT soybeans may test support at $12.78-1/4
A wedge sometimes could be deceiving, becoming invalid immediately after being confirmed.
The bullish scenario is now much favoured.
A break below $13.09-1/4 could open the way towards $12.78-1/4 to $12.95 range.
On the daily chart, the support at $13.00-1/4 triggered the second bounce, which undermines both a bearish wedge and a pennant.
It is not very clear how strong the bounce would be.
The clear part is that it could be weaker than the first one from the July 5 low of $13.04.