SINGAPORE: The CBOT soybean March contract may retest a resistance at $13.83 per bushel, a break above which could lead to a gain into the $14.03 to $14.35-3/4 range.

The rally from $12.98 adopted a five-wave mode, which strongly suggests a surge above $14.35-3/4 over the next few days.

The contract is riding on a wave (3), which is supposed to break $13.83 easily and rise into the target zone. However, the market seems to have underperformed, failing to overcome this barrier in its first attempt.

A break below $13.50-1/2 will not only cause a fall to $13.30-1/2, but also signals an extension of the downtrend from $14.35-3/4.

On the daily chart, as long as the contract hovers above a support at $13.54-1/2, it is likely to test a resistance at $13.97. A break below $13.54-1/2 may open the way towards $13.03-3/4.

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