CBOT soybeans may extend gains to $15.82
- The uptrend is expected to reverse in the range of $15.98 to $16.24. Support is at $15.41-1/4, a break below which could cause a fall into $15.14-1/4 to $15.30-1/4 range.
SINGAPORE: The CBOT soybean May contract may break a resistance at $15.63-3/4 and extend its gains to $15.82.
The resistance is identified as the 207% projection level of an uptrend from $13.36-3/4. In terms of projection analysis, this is not a particular barrier, around which a bearish reversal is unlikely to form.
The uptrend is expected to reverse in the range of $15.98 to $16.24. Support is at $15.41-1/4, a break below which could cause a fall into $15.14-1/4 to $15.30-1/4 range.
On the daily chart, the contract has pierced above a key resistance at $15.51.
It is critical that the contract closes above this level on Monday, as the first black candlestick may form on the rise from the April 13 low of $13.78, if it closes below $15.51.
This candlestick would signal the start of a correction which never occurred.
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