SINGAPORE: The CBOT soybean May contract may break a resistance at $17.16-1/2 and rise towards $17.59-1/4 per bushel, as it has climbed above a neutral range of $16.47-3/4 to $16.90-1/4.
The consolidation within the range may have prepared the contract with enough bullish momentum to revisit the high of $17.59-1/4.
Key support is at $16.90-1/4, a break below which will not only open the way towards $16.47-3/4 to $16.69 range, but also suggest an extension of the correction from $17.59-1/4.
On the daily chart, the contract is presumed to be riding on a wave 3, which could travel far above $17.67.
This wave has a fierce character and is supposed to quickly fulfil the target of $17.67.
However, so far the performance of this wave looks a bit disappointing.
A failure to overcome the barrier at $17.13-1/2 or a drop below $16.94-1/2 may make this wave count very doubtful.
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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