CBOT soybeans may fall into $12.20 to $12.25-1/4 range
SOYB•Soybeans seen retreating after failing at resistance
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SINGAPORE, July 27 (Reuters) - The CBOT soybean November contract SX26 may fall into a range of $12.20 to $12.25-1/4 per bushel, following its failure to break a key resistance at $12.56-1/4.
The failure, along with the bearish divergence on the hourly RSI, suggests a reversal of the uptrend from $11.86-1/2. The fall triggered by the resistance consists of three waves.
Assuming wave b has ended around $12.42-1/4, the current wave c may travel to or below $12.25-1/4. A break above $12.42-1/4 may lead to a gain into $12.47-3/4 to $12.56-1/4 range.
The contract has climbed above the 338.2% projection level of an uptrend from $11.25. It is highly likely to extend gains into the target range.
On the daily chart, the contract narrowly missed its target of $12.63-1/4, the 61.8% projection level of an uptrend from $11.21-3/4.
Considering the drop on Monday, this target may not be fulfilled soon, as the market is undergoing a decent correction.
