TECHNICALS-CBOT soybeans may retest support at $10.45-1/2

SINGAPORE, Feb 25 (Reuters) - The CBOT soybean May contract SK25 may retest support at $10.45-1/2 per bushel, as a downtrend from $10.92-1/4 may have resumed.

The resumption followed the completion of a rising wedge, which has been confirmed as a bearish continuation pattern. The current bounce is considered a pullback towards the wedge.

A break above $10.54 may lead to a gain to $10.61-1/4. A further rise could suggest the development of a high-low bottom, which will become valid when the market breaks $10.67-1/4.

On the daily chart, the contract has completed a pullback towards a rising trendline. It is expected to retest support at $10.40.

A break could open the way towards $10.07-1/2 to $10.23-3/4 range. Such a break looks quite likely, as the bottom of the wave b at $9.96-3/4 serves as a target.

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.