The CBOT soybean November contract (SX26) looks neutral in a range of $11.38-3/4 to $11.44 per bushel, and an escape could suggest a direction.
A break above $11.44 could confirm a target of $11.48-1/2, while a break below $11.38-3/4 may open the way toward the $11.32-1/2 to $11.35 range.
The bias might be toward the downside, considering that the a three-wave cycle from $11.21-3/4 has ended around $11.58-1/4. On the daily chart, a five-wave cycle from $9.82-3/4 has completed.
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.
A certain part the contract may eventually break $11.25-1/4 and fall toward $10.98-1/4.
* 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.