SINGAPORE: The CBOT soybean May contract may drop into a range of $15.06-1/4 to $15.11-1/2, following its failure to break a resistance at $15.25 per bushel.
The resistance is identified as the 161.8% projection level of a wave c from $14.89-1/2. It is the maximum high this wave could travel to.
The drop triggered by the resistance confirmed the completion of the wave c.
Even though it is not very clear if the uptrend from $14.77-3/4 has reversed, it is obvious that the wave c might be further reversed.
A break above $15.19-3/4 could signal the extension of the uptrend towards $15.25 to $15.32-3/4 range.
On the daily chart, the consecutive rise over the past three trading days is classified as a pullback towards a rising trendline.
The pullback seems to have ended around the resistance at $15.24-3/4.
The contract is poised to resume its drop and retest the support of $14.84-3/4.