SINGAPORE: The CBOT soybean July contract may extend its gains into $16.54-1/2 to $16.76-1/2 per bushel, as suggested by a rising trendline.

The trendline establishes a resistance coinciding with$16.54-1/2, around which the contract is supposed to start a correction.However, the current strong momentum may leave little chance for a correction.

The contract may easily break $16.54-1/2 and rise towards $16.76-1/2.

Support is at $16.32-1/4, a break below which could cause a fall to $16.07-3/4 to $16.18-3/4. On the daily chart, the uptrend extends close to a key resistance at $16.41-3/4.

This resistance is stronger than the one at $15.73.

However, its strength may be undermined by the strong bullish momentum.

Based on the analysis on the hourly chart, the contract may surge above this level and then start a pullback.

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