The CBOT soybean November contract (SX26) may retest a resistance at $11.52-1/4 per bushel, a break above which could lead to a gain into the $11.56 to $11.60-3/4 range.
A wave c from $11.24-1/2 looks incomplete, which may travel to $11.60-3/4, its 100% projection level. Given that the market failed to break a resistance at $11.52-1/4 but broke the support at $11.47, it may slide to $11.42-3/4 before resuming its rise.
A break below $11.42-3/4 could open the way toward $11.38-1/2. On the daily chart, a retracement analysis reveals a neutral zone of $11.25-1/4 to $11.59, formed by the 38.2% and the 23.6% levels.
It is not very clear how long the market will consolidate in this range. The strong bounce on the hourly chart is classified as a part of the consolidation.
Considering that a five-wave cycle from $9.82-3/4 has completed, the market is biased to break $11.25-1/4.
* 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.