SINGAPORE: The CBOT soybean July contract may break a support at $16.45-1/2 per bushel and fall into $16.27-1/4 to $16.37-3/4 range.
The contract failed to break a resistance at $16.66.
After the failure, it started to fill a small gap forming between May 13 and May 16.
This gap is thus defined as an exhaustion type, signalling a temporary top around $16.66.
The symmetrical nature of the chart suggests a further drop, as the current fall is expected to be mirroring the rise from the May 4 low of $16.22.
A break above $16.66 may lead to a gain into $16.75 to $16.86-1/4 range.
On the daily chart, a retracement analysis on the uptrend from $12.13-1/2 to $17.34 reveals a resistance at $16.58, which is working together with the one at $16.66 to prevent a further gain.
The doji forming on Monday represents an exhaustion of the rally.
The contract may retrace towards $16.11.