SINGAPORE: The CBOT soybean July contract may rise to $13.69-1/2 per bushel, as it has more or less broken a resistance at $13.58-3/4.
The current rise is full of momentum.
It shows little signs of stopping around a key resistance at $13.58-3/4, the 50% retracement of the downtrend from $14.46-3/4 to $12.70-3/4.
A falling trendline suggests a further gain to $13.79-1/2, around which a decent correction will probably occur.
A drop below $13.50 may extend to $13.37-3/4. On the daily chart, the contract has climbed above a resistance at $13.44-1/2.
It may extend gains to $13.83.
Soybean, corn prices under pressure on US supply outlook
The strong rise from the May 31 low of $12.70-3/4 seems to be due to a completion of a wave (C) from $15.46.
Based on this observation, the current bounce could be as strong as the one from the March 24 low of $13.83-3/4, to extend into $13.83 to $14.14-1/4 range.
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