SINGAPORE: The CBOT soybean July contract may revisit a resistance zone of $13.35-1/4 to $13.44-3/4 per bushel, driven by a wave c. This is the third wave of a three-wave bounce from the May 19 low of $13.04-3/4.
It is capable of travelling to $13.44-3/4, or even a higher level of $13.56-1/4.
Support is at $13.13-1/2, a break below which could open the way towards the $13.02-1/4 to $13.05-1/4 range.
On the daily chart, a bullish engulfing pattern formed between May 19 and Monday, suggesting a reversal of the downtrend from the May 8 high of $14.46-3/4.
China’s soybean imports from Brazil fall further in April
The moderate retracement on Tuesday has hardly damaged this reversal pattern.
Only a drop below $13.06 could signal the continuation of the downtrend.
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