SINGAPORE: The CBOT soybean May contract may break a resistance at $16.90-1/4 per bushel and rise towards a range of $17.16-1/2 to $17.59-1/4.
The consolidation triggered by this resistance may have completed around a support at $16.74-3/4. Most of the time, the consolidation had been limited above a rising trendline.
The intact trendline suggests a steady uptrend, which could eventually extend above $17.59-1/4.
A break below $16.69 may cause a fall into $16.21-1/2 to $16.47-3/4 range.
On the daily chart, the contract is riding on a wave (3)-5, which consists of five smaller waves.
The fiercest wave 3 is unfolding.
Based on this wave count, the following rise could be sharp, quickly extending towards $17.67.
Strategically, the target will be available only when the contract breaks $16.94-1/2.
A break below $16.66-3/4 may signal an extension of the consolidation.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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