SINGAPORE: The CBOT soybean January contract may test a support at $14.01-1/4 per bushel, a break below which could open the way towards $13.90 to $13.97-1/4 range.
The surge from the Oct. 28 low of $13.81 was driven by a wave c, the third wave of a three-wave cycle from the Oct. 6 low of $13.62.
The news that Russia suspended Black Sea deal only helped quicken the completion of the wave c, which is supposed to terminate around $14.27-3/4.
With this wave having narrowly missed the target, it may not unfold towards $14.27-3/4 again.
The upside may be limited to $14.27-3/4, if this wave extends unexpectedly.
On the daily chart, the contract is riding on a wave C from $15.12-1/4, which is capable of travelling to $13.32-1/2.
China Sept soybean imports jump 12% from a year earlier
The bounce triggered by the support at $13.66-3/4 is taking the shape of a flag, which is regarded as a bearish continuation pattern.
The rise on Monday could be the desperate effort of bulls to push the price higher before surrendering to bears.
Source: Brecorder
