SINGAPORE: The CBOT soybean November contract may fall more towards $13.56-1/4 per bushel, as pointed by the lower trendline of a wedge.
The consolidation within the wedge looks incomplete. Most likely, this wedge could turn out to be a bearish continuation pattern, to be followed by another round of deep drop.
The wedge may prove to be a bullish pattern, if the contract could break $13.96.
Immediate resistance is fixed at $13.85, a break above which could make available the target of $13.96. On the daily chart, the contract is stuck in a range of $13.60-3/4 to $13.95-3/4.
China Sept soybean imports jump 12% from a year earlier
Signals will remain neutral until the contract gets out of the range.
Wave pattern suggests a downside bias, as a wave (C) from $15.08-3/4 looks incomplete.
It may eventually travel to $13.25-3/4.