TECHNICALS-CBOT soybeans may test support at $10.45

SINGAPORE, Jan 23 (Reuters) - The CBOT soybean March contract SH25 may test support at $10.45 per bushel, a break below which could open the way towards $10.28 to $10.38 range.

The prices have been controlled by a series of projection levels on the rise from $9.85-1/2. The resistance at $10.70-1/2 unexpectedly stopped the rise and caused a decent correction.

It must be because of the rise from $10.19 being too sharp to sustain. The depth of the correction remains unclear. Given that market has broken $10.54-1/4, it is supposed to drop into $10.38 to $10.45 range.

A break above $10.64-1/4 may signal the continuation of the uptrend towards $10.80-1/2. On the daily chart, there was a false break above resistance at $10.64.

The contract is highly likely to retrace towards $10.41-1/2.

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

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