Technicals-CBOT soybeans may retest resistance at $12.25-1/4
DBA•Soybean contract seen testing higher resistance levels
SINGAPORE, Aug 19 (Reuters) - The CBOT soybean November contract SX26 may retest a resistance at $12.25-1/4 per bushel, as suggested by its wave pattern and a projection analysis.
A five-wave cycle from around $11.84-1/4 looks incomplete. The wave 5 is unfolding toward the peak of the wave 3 around $12.30-1/4.
Support is at $12.17-1/2, a break below would cast a serious doubt on the current bullish outlook.
On the daily chart, the contract may revisit its July 24 high of $12.56-1/2, as it is riding on a wave C or wave (3), which is capable of travelling into a range of $12.63-1/4 to $13.50-3/4.
A retracement analysis on the uptrend from $11.22-3/4 to $12.57 reveals a completion of the deep correction from $12.57, around a key support at $11.74, the 61.8% retracement.
The completion, along with the following strong rise, suggests a resumption of the uptrend from.
