SINGAPORE: The CBOT soybean May contract could drop into a range of $13.62-1/4 to $13.78-1/4, as suggested by a retracement analysis.

The analysis is on the uptrend from $13.36-3/4 to $14.45-3/4. It reveals a support at $13.91-1/4, the 50% level, which triggered a sharp bounce that has been totally reversed.

The reversal indicates an incomplete drop from $14.45-3/4. Resistance is at $14.04, a break above which may lead to a gain to $14.20.

On the daily chart, the contract is presumed to be confined within a rising wedge, which could turn out to be a top pattern if it breaks $13.63 or a bullish continuation pattern if it breaks $14.45-3/4.

The current drop could be against the rise from $8.79. It may extend to $13.63.

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