TECHNICALS-CBOT soybeans may test resistance at $10.14-3/4

SINGAPORE, Jan 2 (Reuters) - The CBOT soybean March contract SH25 may test resistance at $10.14-3/4 per bushel, a break above which could open the way towards $10.30-1/2 to $10.41-1/4 range.

The contract has broken a falling trendline. The break suggests a reversal of the downtrend from $10.99-1/2. A retracement analysis on the shorter downtrend from $10.55-3/4 marks key resistance at the 61.8% level of $10.14-3/4.

It is not very clear if the market could overcome this barrier at its first attempt. A failure could be followed by a pullback towards the trendline.

A break below $10.02 would indicate the break above the trendline was unsuccessful. On the daily chart, both the RSI and the MACD formed a bullish divergence.

Together with the possible completion of a five-wave cycle, the divergence strongly suggests an extension of the current bounce towards $10.23-1/2 to $10.41-1/2 range.

* Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own.

** No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult their own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

(Reporting by Wang Tao; Editing by Varun H K)

((wang.tao@tr.com; +65 6973 8364/9188 4196))