TECHNICALS-CBOT soybeans may test resistance at $10.52

SINGAPORE, Feb 21 (Reuters) - The CBOT soybean March contract SH25 may test resistance at $10.52 per bushel, a break above which could open the way toward $10.58-1/2.

A wedge proved to be a bullish pattern, suggesting a target of $10.58-1/2. A retracement analysis on the fall from $10.79-3/4 reveals a break above the resistance at $10.45-1/4, the 38.2% level.

The break is likely to lead to a gain into $10.52 to $10.58-1/2 range. The break looks reliable, as it is the third time that the market pierced above this barrier.

A close below $10.45-1/4 on February 21 would make this pattern invalid. The bullish target of $10.58-1/2 has to be aborted. On the daily chart, the contract is retesting resistance at $10.48-3/4.

This attempt can't simply be classified as a pullback toward a rising trendline. It looks more like a continuation of the uptrend.

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.