SINGAPORE: The CBOT soybean May contract may test a resistance at $16.77-1/4 per bushel, a break above could lead to a gain into $17.00-3/4 to $17.08-1/4 range.
The current fall has been controlled by two sets of retracements, respectively on the uptrend from $13.59-1/2 and the shorter trend from $15.46-1/4.
The contract has stabilized around a support at $16.52-1/4. The stabilization suggests the completion of the first drop from $17.59-1/4. The contract may bounce towards the range of $17.00-3/4 to $17.08-3/4 before falling again.
A break below $16.52-3/4, however, could open the way towards $16.27-1/2.
On the daily chart, a five-wave cycle from $13.59-1/2 has completed, as confirmed by the long-shadowed shooting star on Thursday.
The previous wave 4 unfolded from $15.46-1/4 to $16.34-1/2, which works as a target zone. Strategically, this target zone will be confirmed when the contract breaks $16.44-1/2, as before dropping further, the contract may bounce moderately.
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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