The CBOT soybean November contract (SX26) may break a resistance at $11.97 per bushel, and rise into a range of $12.05-3/4 to $12.11.
The contract is riding on a powerful wave C from $11.24-1/2, which has travelled far above its 161.8% projection level of $11.83-1/4.
The projection analysis suggests an extension of this wave into the range of $12.11 to $12.19-1/2. Support is at $11.88-1/2, a break below which may trigger a fall into the range of $11.79 to $11.83-1/4.
On the daily chart, so much of the drop from $12.13-1/2 has been reversed that the market may revisit this high. It faces a resistance at $11.97-1/4, which apparently stopped the rise.
The speculation is the current correction may be limited to $11.79-3/4.
* 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.
** 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.