SINGAPORE: The CBOT soybean May contract may extend its loss into a range between $14.34-1/4 and $14.40-1/2, as suggested by a projection analysis.
The contract has briefly pierced below its 314.6% projection level of $14.47.
Chances are it may fall more into the range formed by the 361.8% and the 338.2% levels.
Another projection analysis on a wave C from $15.38-1/2 works out a target range of $14.42 to $14.38-3/4, which overlaps the zone of $14.34-1/4 to $14.40-1/2.
Resistance is at $14.54-3/4, a break above which could lead to a gain into $14.61-3/4 to $14.68 range.
CBOT soybeans may retest resistance at $14.85
On the daily chart, the contract is stabilizing around a support at $14.44-3/4. Generally, the 61.8% retracement works well to stop the fall and trigger a bounce.
In view of the current strong momentum, the $14.44-3/4 level may make itself an exception.