SINGAPORE: The CBOT soybean May contract may stabilize in a support zone of $14.20-1/2 to $14.31-1/2 per bushel, and retest a resistance at $14.54.

The contract is pulling back towards a falling trendline, which establishes a support around $14.20-1/2.

The strong surge on Wednesday signals a resumption of the uptrend, which still closely observes a set of projection levels on a wave C from $13.36-3/4.

A break above $14.46-1/2 could lead to a gain into $14.54 to $14.72-1/4 range while a break below $14.20-1/2 could be followed by a drop to $14.04-1/2.

On the daily chart, the contract failed to break a resistance at $14.54-3/4 for the second time. A correction has been triggered, which is expected to be much shallower than the one from the March 8 high of $14.60.

A projection analysis reveals a possible ending point of the correction in the support zone of $14.17-3/4 to $14.33-1/2.

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