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.