TECHNICALS-CBOT soybeans to retest resistance at $10.35-1/4

SINGAPORE, March 7 (Reuters) - The CBOT soybean May contract SK25 is expected to retest resistance at $10.35-1/4 per bushel, a break above which could lead to a gain into $10.42-3/4 to $10.48-3/4 range.

The bounce over the past two days looks so strong that it suggests a reversal of the downtrend from $10.93-1/4. A retracement analysis of the trend reveals that the market has briefly pierced above the 38.2% level of $10.30-1/4.

Chances are the bounce may extend into the $10.42-1/4 to $10.54-1/4 range. Immediate support is at $10.23, a break below which could trigger a fall to $10.15-1/2.

A further drop would suggest the completion of the first round of the bounce or the resumption of the downtrend. On the daily chart, the contract has pierced above resistance at $10.23-3/4. It may test the resistance at $10.40.

A close of the price below $10.23-3/4 on March 7 would be considered the early sign of the downtrend to resume.

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.