SINGAPORE: The CBOT soybean July contract may test a resistance at $17.53-1/4 per bushel, a break above could lead to a gain to $17.73-1/4.
The contract is riding on a wave (3), which may travel to $18.07-1/2.
A strong resistance at $17.53-1/4 has been identified, which may stop this wave.
It is not very clear how market is going to react to this resistance.
The reaction could be a sideways move around this barrier or a correction.
Support is at $17.36-1/2, a break below may cause a fall to $17.19-1/2.
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On the daily chart, the contract has climbed above a wedge, which has been more or less confirmed as a bullish continuation pattern, suggesting a target of $18.17.
A projection analysis reveals a resistance at $17.51-1/2, which is expected to work together the one at $17.53-1/4 on the hourly chart to temporarily stop the rise.
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