SINGAPORE: The CBOT soybean May contract may test a resistance at $16.52-3/4 per bushel, a break above could lead to a gain into $16.77-3/4 to $17.08-3/4 range.
The contract managed to stabilize above a rising trendline.
The uptrend temporarily remains steady.
The drop from $17.59-1/4 has developed too fast to maintain.
It is expected to be further reversed over the next few days.
CBOT soybeans may test resistance at $16.77
A break below $15.96-1/2 could signal the continuation of the downtrend towards $15.46-1/4.
On the daily chart, a five-wave cycle from $13.59-1/2 has completed, as confirmed by the long-shadowed shooting star on Feb. 24 and the following big black candlestick.
However, one question remains unresolved: has the whole uptrend from $12.40-1/2 reversed? The uptrend from $13.59-1/2 could have been driven by either a wave (5) or a wave (3)-3.
These different wave counts could lead to two divergent conclusions. Simply based on the candlestick pattern, the contract could revisit the Feb. 25 low of $15.79 after a weak bounce.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
Source: Brecorder
