CBOT soybeans poised to fall into $10.32-1/2 to $10.35-1/2 range

The CBOT soybean November contract (SX25) is poised to break support at $10.40-1/2 per bushel, and fall into the $10.32-1/2 to $10.35-1/2 range.

The fall from $10.62-3/4 consists of three waves. The current wave (c) may travel to $10.32-1/2, supposing it is roughly equal to the wave (a).

Resistance is at $10.44-1/2, a break above which could lead to a gain into the $10.48-1/2 to $10.53-1/4 range. On the daily chart, the contract is consolidating within a wedge, which has been following the ratio of 0.864 in its formation.

The contract may retrace towards $9.92-1/4, the 86.4% retracement of the uptrend from $9.81-1/4.

* 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.