SINGAPORE: The CBOT soybean May contract may retest a support at $16.69 a bushel, with a good chance of breaking below this level and falling into $16.21-1/2 to $16.47-3/4 range.
The rise on Wednesday stopped around a resistance at $17.34-1/2, which is slightly below the recent high of $17.59-1/4.
This behaviour suggests an incomplete correction from $17.59-1/4.
Three waves make up the correction. The current wave c is unfolding towards $15.79, the bottom of the wave a.
A break above $16.90-1/4 may lead to a gain into $17.16-1/2 to $17.34-1/2 range.
On the daily chart, a shooting star forming on Wednesday confirmed the completion of the bounce from $15.79.
This bounce is a part of a correction from $17.59-1/4.
The correction may develop into a triangle or a zigzag. Both of these patterns suggest a further drop into $15.94-1/4 to $16.22 range.
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