TECHNICALS-CBOT soybeans to test support zone of $10.10-1/2 to $10.15-1/4

SINGAPORE, March 10 (Reuters) - The CBOT soybean May contract SK25 is expected to test support zone of $10.10-1/2 to $10.15-1/4 per bushel, a break below which could open the way toward $9.97.

The contract broke support at $10.22-3/4, after failing to break resistance at $10.34-3/4 twice. The next support is at $10.15-1/4. The failure to break $10.34-3/4 suggests both the formation of a top and a completion of the bounce from $9.91.

A break above $10.29-1/2 would indicate the extension of the bounce toward $10.42-1/4 to $10.48-1/4 range. On the daily chart, the contract faces strong resistance around the upper channel line.

The flat move around resistance at $10.23-3/4 signals a dissipation of the bullish momentum. A drop to $10.07-1/2 looks likely.

The downtrend from $10.92-3/4 will be considered to have resumed, once the contract falls to $10.07.

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.