SINGAPORE: The CBOT soybean May contract may retest a resistance at $14.99-3/4 per bushel, a break above which could led to a gain into $15.06-1/4 to $15.12-1/2 range. A five-wave cycle from the March 8 high of $15.33-3/4 has completed. It is expected to be further reversed.
Based on a double-bottom forming around $14.79, the contract may climb to $15.12-1/2. A channel technique suggests a higher target of $15.23.
These targets look achievable, not only because of the completion of the five-wave cycle, but also because of the possible ending of a wave C from $15.38-1/2.
Support is at $14.89-1/4, a break below which could open the way towards $14.78-3/4 to $14.85 range.
CBOT soybeans may bounce into $14.99-3/4 to $15.02 range before falling
On the daily chart, the contract found a support at $14.84-3/4.
The second pullback towards a rising trendline has started, which is expected to be much weaker than the first one from the Feb. 28 low of $14.77-3/4. A bearish target zone of $14.44-3/4 to $14.64-3/4 has to be temporarily aborted, as the contract may bounce into $15.09-1/2 to $15.24-3/4 range.
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