SINGAPORE: The CBOT soybean May contract may test a resistance at $16.77-1/4 per bushel, a break above could lead to a gain into $17.00-3/4 to $17.08-1/4 range.

The current fall has been controlled by two sets of retracements, respectively on the uptrend from $13.59-1/2 and the shorter trend from $15.46-1/4.

The contract has stabilized around a support at $16.52-1/4. The stabilization suggests the completion of the first drop from $17.59-1/4. The contract may bounce towards the range of $17.00-3/4 to $17.08-3/4 before falling again.

A break below $16.52-3/4, however, could open the way towards $16.27-1/2.

On the daily chart, a five-wave cycle from $13.59-1/2 has completed, as confirmed by the long-shadowed shooting star on Thursday.

The previous wave 4 unfolded from $15.46-1/4 to $16.34-1/2, which works as a target zone. Strategically, this target zone will be confirmed when the contract breaks $16.44-1/2, as before dropping further, the contract may bounce moderately.

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