SINGAPORE: The CBOT soybean July contract may break a resistance at $15.99-1/4 per bushel and rise to $16.25-1/4, driven by a powerful wave C.

There are five smaller waves making up the first part of the wave C. This impulsive mode suggests a stronger rally is coming. A projection analysis reveals a conservative target of the wave C at $16.70, which is near the May 12 high of $16.67-1/2.

Support is at $15.78-1/4, a break below which may be followed by a drop to $15.57-1/4. On the daily chart, the contract is riding on a wave (5) which is expected to travel above the peak of the wave (3) at $16.67-1/2.

This wave has overcome the barrier at $15.73. It is expected to extend towards the next resistance at $16.41-3/4.

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