CBOT soybeans may fall towards $9.39-3/4
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SINGAPORE, Nov 6 (Reuters) -The CBOT soybean January contract SF25 may break support at $9.83-1/2 per bushel and fall towards $9.39-3/4.
The big drop on Wednesday seems to have broken the balance in the neutral range of $9.83-1/2 to $10.10-3/4. Market is more likely to fall towards $9.39-1/2, to fulfil this target of a wave C, than to test resistance at $10.10-3/4 again.
However, confirmation of a break below $9.83-1/2 is still needed, as the contract may stabilize around this level again. The confirmation will be when the Oct. 31 low of $9.77-1/4 is broken.
On the hourly chart, until the contract falls below $9.77, the pattern from the Oct. 21 low of $9.81-3/4 may turn out to be an inverted head-and-shoulders.
A break above $9.87-3/4 may trigger a gain into $9.92-3/4 to $9.98-3/4 range.
* 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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