SINGAPORE: The CBOT soybean March contract may retest a support at $15.72-1/4 per bushel, with a good chance of breaking below this and falling into a narrow support zone of $15.31 to $15.42.
The sharp drop from the Feb. 10 high of $16.33 was due to the completion of a wave V-3 from $13.82-1/2. Five smaller waves make up this wave.
The drop could be extending towards the bottom of the wave 4 around $15.31.
Resistance is at $16.02-3/4, a break above could lead to a gain into the range of $16.21-3/4 to $16.52.
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On the daily chart, the exhaustion gap forming on Feb. 7 is likely to be filled soon.
The shooting star significantly increased the chance of a such a move.
A rising channel suggests target zone of $15.23-$15.42.
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