SINGAPORE: The CBOT soybean July contract may retest a resistance at $17.37-1/2 per bushel, a break could open the way towards $17.57-1/2.

The correction triggered by this resistance was a bit deeper than expected.

However, the contract managed to stay above a rising trendline after briefly piercing below it. The uptrend looks steady.

A break below $16.93-1/2, however, could confirm a reversal of the uptrend.

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A bearish target zone of $16.63-1/2 to $16.73-3/4 will be established accordingly.

On the daily chart, the contract is a bit struggling around the upper trendline of a wedge.

The current expectation is the contract would eventually climb above this pattern, as bulls are quite persistent in testing the resistance at $17.27-3/4.

The bullish outlook has to be revised, once the contract breaks the support at $16.85.

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