CBOT soybeans may bounce to $16.25-3/4

SINGAPORE: The CBOT soybean July contract may break a resistance at $16 and bounce to $16.25-3/4 per bushel, as suggested by a retracement analysis.

The contract has found a support at $15.79-1/4. Its failure to break this level suggests the completion of the fall from $16.67-1/2, or the first part of this fall.

Either the uptrend will resume or the contact will bounce towards $16.67-1/2. A break below $15.79-1/4 could open the way towards the range of $15.32-3/4 to $15.58-1/2.

On the daily chart, a projection analysis reveals a similar support at $15.73.

Based on this analysis, the contract may bounce towards $16.41-3/4.

The drop may resume upon the completion of the bounce, as a wave (4) is developing, which may travel towards the bottom of the wave 4 around $13.55.

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.