SINGAPORE: The CBOT soybean January contract is biased to break a support at $14.60 per bushel and retrace to $14.47-1/2, as it failed to break a resistance at $14.72-1/2 again.
The resistance is strengthened by a similar one of $14.69-3/4.
Even though the contract is riding on a wave c, which may eventually extend into $14.88-1/4 to $15.13-1/2 range, the bearish divergence on the hourly RSI simply does not support an immediate break above these resistances.
Most likely, the contract could retrace towards $14.47-1/2 to accumulate momentum before retesting these barriers.
A break will be confirmed when the contract stabilizes above $4.72-1/2. On the daily chart, the contract closed below $14.69-3/4 on Wednesday.
This resistance is likely to trigger a pullback towards a falling trendline, in consideration of the weakness on the hourly chart.
Soybeans at 3-week high, wheat steadies after 3-month low
The pullback may extend to $14.44-1/4, to be followed by a continuation of the uptrend.
The bullish outlook will be revised once the contract breaks the support at $14.44-1/4.
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