SINGAPORE: The CBOT soybean November contract may test a support at $13.65 per bushel, a break below which may open the way towards $13.50-3/4.
The strong rise triggered by the support at $13.50-3/4 may have been driven by a wave 4, the fourth wave of a five-wave cycle from the Sept. 13 high of $15.08-3/4.
This wave seems to have completed below a resistance at $14.02-1/2.
It will be reversed by the current wave 5. Resistance is at $13.88-1/4, a break above which may lead to a gain into $14.02-1/2 to $14.11-1/4 range.
On the daily chart, the contract faces a resistance at $13.95-3/4.
As long as it hovers below this barrier, the downtrend from $15.08-3/4 will remain intact.
Pace of Brazil soya planting slow
A break above $13.95-3/4 could open the way towards $14.38-3/4, as suggested by the upper channel, which is duplicated from the lower channel.