SINGAPORE: The CBOT soybean July contract is poised to retest a resistance at $16.25-1/4 per bushel, as it may have completed a correction triggered by this barrier.

The correction consists of three waves. The third wave labelled c seems to have ended around a support at $15.57-1/4. It is much shorter than the wave a.

This structure indicates a possible extension of the uptrend from $14.89-1/4 above $16.25-1/4. A break below $15.57-1/4 could open the way towards $15.31-1/4.

On the daily chart, the contract is riding on a wave (5), which is expected to travel into a range of $17.26-1/2 to $18.64, as pointed by a rising trendline.

This wave may have just completed its first two component waves. The third wave is ready to travel towards $16.41-3/4.

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