CBOT soybeans may consolidate before rising
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SINGAPORE, July 19 (Reuters) -The CBOT soybeans November contract SX24 may briefly consolidate in the range of $10.38-1/4 to $10.47-1/4 per bushel, before rising towards $10.54-1/2.
The contract stabilized around support at $10.32 and climbed far above resistance at $10.47-1/4. The rise could be forming the right shoulder of an inverted head-and-shoulders.
This bottom pattern will be confirmed when market breaks $10.47-1/4. It will then suggest a target of $10.70-3/4. A break below $10.38-1/4 will make this pattern invalid.
On the daily chart, a hammer formed on Thursday. It will be confirmed as a bullish reversal pattern by a white candle on Friday.
Given that signals on the hourly chart have strongly suggested a rise on Friday. The hammer could be predetermined as a reversal sign.
** Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own.
** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Reporting by Wang Tao; Editing by Rashmi Aich
If you have a query or comment on this story, send an email to wang.tao@tr.com.
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