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The CBOT soybean November contract (SX25) may retrace toward $10.51 per bushel, or consolidate around $10.59-1/2.Thomson Reuterstech The resistance is identified as the 161.8% projection level of a wave C from $10.01, which may either end around this level or extend far above it. In either case, a consolidation or a correction is highly anticipated. A close of the price above $10.59-1/2 on Monday would confirm the extension of the wave C toward $10.87-1/4. The break confirmed an extension of the wave C toward $10.51 to $10.59-1/2 range, formed by its 138.2% and 161.8% projection levels. On the daily chart, the August 23 high of $10.62-3/4 works as resistance, strengthening the one at $10.59-1/2 on the hourly chart, to stop the rise. Increasing the chance of a correction is a gap forming on Monday, which is identified as an exhaustion type. * 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.
