The CBOT soybean November contract (SX25) remains neutral in a range of $10.05 to $10.16-3/4 per bushel, and an escape could suggest a direction.Thomson Reuterssx
A break below $10.50 could confirm a continuation of the downtrend towards $9.95-1/4, while a break above $10.16-3/4 may lead to a gain into the $10.21 to $10.27 range.
The bias might be towards the downside, as a wave (c) has a better chance of extending into the $9.85-1/2 to $9.95-1/4 range, after it travelled below its 100% projection level of $10.11-1/4.
On the daily chart, a tiny triangle is contracting to a point. It is expected to be followed by a sharp move. The favoured scenario is a deep fall, as the triangle looks like a bearish continuation pattern.
The lower trendline of a big wedge points at a target of $9.92-1/2.
* 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.
