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.

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