SINGAPORE: CBOT soybean May contract may revisit its April 10 low of $14.82-1/2 per bushel as a double-top seems to be forming around $15.28. The pattern suggests a drop towards $14.82-1/2.
It will be confirmed when the contract slides further below this level.
This top pattern could also be viewed as a flat, which indicates a target of $14.82-1/2.
The bounce triggered by the support of $14.89 is classified as a pullback towards a rising trendline.
Resistance is at $15.01, a break above which could lead to a gain to $15.07. On the daily chart, the contract is poised to retest a support of $14.84-3/4.
China March soybean imports rise 8% on year
A break may trigger a deep drop into the $14.44-3/4 to $14.64-3/4 range.
The hope for a possible inverted head-and-shoulders will exist until the support at $14.84-3/4 is broken.
The pattern developed from the February 28 low of $14.77-3/4.
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