CBOT soybeans may bounce into $10.42-1/4 to $10.46-1/2 range
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SINGAPORE, July 29 (Reuters) -The CBOT soybean November contract SX24 may bounce into a range of $10.42-1/4 to $10.46-1/2 per bushel, as it managed to stabilize around the July 18 low of $10.31-3/4.
The strength of this bounce is yet to be determined. However, a big black candlestick before the bounce defined limit around $10.45 for the bounce.
Whether the bounce could extend further is subject to further observation. A break below $10.31-3/4 could be followed by a drop into a zone of $10.20-1/4 to $10.24-1/2.
On the daily chart, the contract briefly pierced below support at $10.33-1/2 after failing to break a falling trendline again.
Undoubtedly, the downtrend has extended. Based on the bounce to the July 23 high of $10.86-3/4, market may fall to $9.76.
** 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;
If you have a query or comment on this story, send an email to wang.tao@tr.com.
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