SINGAPORE: The CBOT soybean July contract may test a resistance at $17.57-1/2 per bushel, a break could open the way towards $17.69-1/2 to $17.77-1/4 range.

The strong surge on Tuesday confirmed a bullish triangle, which suggests a target of $17.77.

The surge was presumably driven by a wave (3), which has travelled above its 76.4% projection level.

This wave has a better chance of extending to $17.57-1/2. A break below $17.37-1/2 may be followed by a drop towards $17.25-1/2.

CBOT soybeans may fall into $16.27-1/4 to $16.37-3/4 range

The drop will be classified as a pullback towards the triangle.

On the daily chart, the contract eventually climbed above a wedge.

This move has a decisive impact on the continuation of the uptrend, which looks more and more like riding on a powerful wave (5)-3.