SINGAPORE: The CBOT soybean May contract may end its bounce in a range of $15.03-1/2 to $15.07-1/4 per bushel, and resume its drop thereafter.
The bounce is classified as a pullback towards the neckline of a double-top.
The whole uptrend from $14.05-1/2 may have reversed, as suggested by this pattern.
The drop from the April 3 high of $15.27-3/4 may consist of three waves.
It is the wave b that is driving the bounce.
CBOT soybeans may retest support at $15.07-1/4
This wave is expected to be reversed by wave c, which may develop around $15.07-1/4.
A break above $15.07-1/4 could lead to a gain into the $15.13-1/2 to $15.26-1/2 range.
On the daily chart, the bounce was triggered by the support at $14.84-3/4, the 38.2% retracement of the uptrend from $13.80.
This retracement analysis reveals a resistance at $15.09-1/2, which serves as a limit to the bounce.
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