CBOT soybeans may extend gains into $15.82-$15.98 range
- When the first black candlestick appears remains a mystery.
SINGAPORE: The CBOT soybean May contract may break a resistance at $15.72-1/4 and extend its gains to the $15.82-$15.98 range.
The resistance is identified as the 214.6% projection level of an uptrend from $13.36-3/4. The current bet is the trend may extend to the range of $15.98 to $16.24.
However, there are signs of weakness. Three highs formed closely. A rising wedge is contracting to a point. A bearish divergence appeared on the hourly RSI.
It won't be a surprise if a sharp correction occurs on Tuesday or Wednesday.
A break below $15.56-1/4 could signal such a correction towards the range of $15.30 to $15.41-1/4.
On the daily chart, bulls are running wild. There are ten consecutive white candlesticks from the April 13 low of $13.78.
When the first black candlestick appears remains a mystery.
Most likely, the current linear rise could end with a sharp spike.
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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