Wednesday, October 6, 2010

Soybeans Technicals from Reuters

SINGAPORE, Oct 6 (Reuters) - The CBOT soybean November futures contract <SX0> is expected to fall back to Monday's low of $10.42 per bushel as its rebound on Tuesday has ended.

The rebound was regarded as a pullback towards an ascending trendline drawn though the Sept 14 low at $10.25 and the Sept 16 low at $10.33. It was also deemed as a pullback towards the neckline of a bearish head-and-shoulders pattern.

The ascending trendline touches $10.76, the 50 percent Fibonacci retracement level on the fall from $11.09-¾   to $10.42, and a strong resistance has formed over there to prevent a further rebound.

Only a rise above $10.90 would invalidate the bearish outlook

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