SINGAPORE: The CBOT soybean July contract is expected to retest a resistance at $17.77-1/4 per bushel, with a good chance of breaking above this level and rising to $17.89-1/4.
The strong surge on Thursday confirmed the progress of a powerful wave (3), which is strong enough to travel to $18.09-1/4. The correction from the Thursday high of $17.48 seems to have completed around a support at $17.60-3/4.
The wave (3) could have resumed towards $18.09-1/4.
Immediate support is at $17.63-1/4, a break below which may cause a fall into $17.46 to $17.57-1/2 range.
CBOT soybeans may retest resistance at $17.37-1/2
On the daily chart, a bullish wedge has been confirmed, suggesting a target of $18.40.
A projection analysis reveals a realistic target zone of $17.92-1/4 to $18.17-3/4.