SINGAPORE: The CBOT soybean May contract may bounce into a range of $14.99-3/4 to $15.02 per bushel, to complete a wave 4. This wave is expected to adopt an alternate mode with that of the wave 2, which is sharp. Three smaller waves make up the wave 4. The wave c may travel into the target zone.
The downtrend may resume, upon the completion of the wave 4 in the zone.
It will be riding on wave 5. A break below $14.89-1/4 could trigger a drop into $14.78-3/4 to $14.85 range. On the daily chart, the contract is consolidating around a support at $14.84-3/4.
The consolidation is expected to be very brief, compared to the one in February which developed into a sharp bounce.
CBOT soybeans may bounce to $15.06-1/4
The contract not only fell below a rising trendline twice, but also hovered below this line for many days.
The suggestion is obvious that the trend from $13.80 has reversed.
A retracement analysis on the trend reveals a target zone of $14.44-3/4 to $14.64-3/4.
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