SINGAPORE: The CBOT soybean July contract may test a support at $15.31-1/4 per bushel, a break could cause a drop to $15.15-1/4.

The current fall could be classified as a part of the correction from $16.67-1/2. Three waves make up the fall. The third wave labelled c is driving the contract towards its nearest target of $15.13-1/4, the 61.8% projection level.

In the meantime, the fall has also been precisely controlled by a set of retracement on the downtrend from $16.67-1/2 to $14.89-1/4. The nearest support is at $15.31-1/4.

A break above $15.57-1/4 could lead to a gain into $15.78-1/4 to $15.99-1/4 range. On the daily chart, the uptrend remains intact, as an upward wave (5) is yet to unfold.

However, the contract may slide towards $15.04-1/4 again, as it dropped below a support at $15.73 after failing to break a resistance at $16.41-3/4.

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