SINGAPORE: The CBOT soybean July contract may drop to $17.25-1/2, following its failure to break a resistance at $17.57-1/2 per bushel.
The failure triggered a pullback towards a bullish triangle.
The pullback may end around $17.25-1/2. The triangle suggests a target of $17.77.
The uptrend is expected to resume upon the completion of the pullback.
CBOT soybeans may test resistance at $17.57-1/2
Immediate resistance is at $17.46, a break above may lead to a gain to $17.57-1/2 to $17.69-1/2 range.
On the daily chart, a projection analysis reveals a resistance at $17.51-1/2, which is close to the $17.57-1/2 on the hourly chart.
The combined resistances worked effectively to stop the rise. However, a bullish wedge has been more or less confirmed as well, it suggests a target of $18.40.
The weakness of the market could be temporary, as the consolidation in the range of $16.85 to $17.24-3/4 over the past few trading sessions could have prepared bulls with enough momentum.
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