SINGAPORE: The CBOT soybean July contract may test a support at $16.63-1/2 per bushel, a break below could open the way towards $16.43-1/4.
The deep drop on Tuesday confirmed the completion of a five-wave cycle from $15.78. a retracement analysis reveals a deep piercing below a support at $16.83-3/4.
Chances are the contract may slide more to $16.63-1/2. In the meantime, a rising trendline has been broken.
The current weak bounce could be a pullback towards this trendline. A rise above $16.94-1/4 may be extended to $17.08-3/4.
CBOT soybeans may test resistance at $17.53-1/4
On the daily chart, the contract failed to climb above a wedge.
The failure complicated the picture, as the contract may either retest the resistance at $17.51-1/2 or fall towards $16.03-1/4.
Regardless of the unclear trending signal, the big black candlestick on Tuesday suggests a further fall into $16.44-1/4 to $16.64-3/4 range.
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