SINGAPORE: The CBOT soybean July contract may break a resistance at $16.25-1/4 per bushel and rise to $16.67-1/2, driven by a powerful wave C.

More than 61.8% of the fall from $16.67-1/2 has been reversed. Chances are this high may be revisited. Five smaller waves make up the wave C. The strongest wave 3 is unfolding.

A projection analysis suggests a wide target zone of the wave C from $16.70 to $17.82. Support is at $15.99-1/4, a break below which may cause a drop limited to $15.78-1/4.

On the daily chart, the wave count is a bit different. 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.

A projection analysis and a trendline indicates a target zone of $17.26-1/2 to $18.64.

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