Thursday, October 7, 2010

Soybeans Technicals from Reuters

SINGAPORE, Oct 7 (Reuters) - CBOT soybean November futures contract <SX0> is technically neutral as the fall during the previous trading session was too shallow to confirm a move towards the projected target at $10.42 per bushel.

Soybeans failed the trendline resistance at $10.73, but it may attempt the second time to break above $10.70 and rise towards $10.90.

However, a conflicting signal is given by the bearish head-and-shoulders pattern as it points to a target $10.25.

The bias could be with the bulls, as a morning star on daily candlestick chart (chart not given) could indicate a bullish reversal at the Oct. 4 low of $10.42, as a result, the chance for a further dip to $10.42 is significantly reduced.

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