SINGAPORE: The CBOT soybean May contract may fall to $14.04 per bushel, as it faces a resistance at $14.20.

The resistance is identified as the 23.6% retracement on the uptrend from $13.36-3/4 to $14.45-3/4. The correction from $14.45-3/4 may consist of three waves.

The current wave b could end around $14.20, to be then reversed by a downward wave c. A common gap forming on Monday may be filled as well.

A break above $14.20 could lead to a gain into $14.29-3/4 to $14.45-3/4 range. On the daily chart, the contract is still confined within a rising wedge, which may turn out to be a top pattern, as it generally appears when a wave 5 is ending.

A break above $14.45-3/4 could confirm the wedge as a bullish continuation pattern, which suggests a target around $15.50.

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