SINGAPORE: The CBOT soybean May contract may retest a resistance at $14.85 per bushel, a break above which could lead to a gain to $14.95-1/2. The strong bounce on Monday confirmed the completion of a wave C.
Five smaller waves make up this wave. The wave 4 peaked around $14.95-1/2, which works as a target. The bounce so far has been closely observing a set of projection levels on the fall from $15.33-3/4.
The support at $14.78-3/4 is expected to stop the shallow drop. A break below $14.78-3/4 could result into a loss to $14.72-1/4. On the daily chart, the contract stabilized around a support at $14.64-3/4.
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Thanks to this stabilization, a piercing pattern formed between Monday and March 17. It is a typical bullish reversal pattern, likely to be followed by a decent bounce.
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