SINGAPORE: The CBOT soybean May contract may retest a support at $15.07-1/4 per bushel, as a correction triggered by $15.26-1/2 looks incomplete.
The correction could be due to the completion of a five-wave cycle from $14.05-1/2. It may consist of three waves.
The current wave b is expected to end below $15.26-1/2, to be reversed by wave c. The break above a falling trendline seems doubtful, in view of the coming drop towards $15.07-1/4 again.
The drop may extend towards the bottom of the wave around $14.70.
A break above $15.26-1/2 may lead to a gain into the $15.34 to $15.40-1/4 range.
On the daily chart, the rise from the March 24 low of $14.05 is regarded as a part of the downward wave (C) from $15.49-3/4.
Unless the contract could break $15.37-3/4, it is biased to resume its downtrend from $15.49-3/4.
Soybeans climb to 3-week high, corn jumps on US planting delays
The pause of the uptrend around a resistance at $15.24-3/4 suggests the formation of a top.
A break above $15.24-3/4 may lead to a gain into the $15.37-3/4 to $15.49-3/4 range.
Comments
Comments are closed.