CBOT soybeans may test support at $11.89
SOYB•Source note
- Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own. His analyses are exclusively published on the Workspace platform, a London Stock Exchange product.
Daily chart remains bearish
On the daily chart, although the market tried to climb towards the May 13 high of $12.14, the wave count remains bearish.
A three-wave cycle from $12.13-1/2 has not completed, with the wave c unfolding towards the bottom of the wave a around $11.25.
Support and downside target levels
The CBOT soybean November contract SX26 may test support at $11.89 per bushel, with a good chance of breaking below it and falling towards the $11.79-1/4 to $11.83-1/2 range.
A rising wedge proved to be a top pattern, after its lower trendline was broken. The break also confirmed a reversal of the uptrend from $11.25.
Five waves make up the trend. The wave 4 bottom at $11.72-3/4 serves as a target. A realistic target zone is from $11.79-1/4 to $11.83-1/2.
