SINGAPORE: The CBOT soybean May contract may test a resistance at $16.46-1/4 per bushel, a break above could lead to a gain into $16.67-1/2 to $16.93-3/4 range.
The current bounce looks so strong that it suggests a completion of a downward wave C from $17.36-1/2, even though this wave only unfolded about 86.4% of its expected length.
The resistance at $16.46-1/4 is strengthened by a similar one established by a falling trendline. It is not very clear if the contract could break the resistance in its first attempt.
A break below $16.25 could signal a resumption of the wave C.
CBOT soybeans may fall to $15.56-1/4
On the daily chart, the current consolidation is presumably confined within a wedge, the upper trendline of which suggests a target of $17.13-1/2.
But first, the contract has to break a resistance at $16.66-3/4, around which a big black candlestick started.
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