TECHNICALS-CBOT soybeans may retest support at $10.31

SINGAPORE, April 21 (Reuters) - The CBOT soybean May contract SK25 may retest support at $10.31 per bushel, a break below which could open the way towards $10.16-1/4.

The contract faces strong resistance at $10.45-1/2, the 61.8% retracement of the downtrend from $10.93 to $9.69. A wave C from $9.69 may either end around this barrier or extend far above it.

The sideways move below the resistance is interpreted as a dissipation of the bullish momentum and a sign of the wave C completion.

A break above $10.45-1/2 could open the way toward $10.63-3/4. On the daily chart, the flat move around resistance at $10.38-1/2 might turn out to be an accumulation for another round of strong rally.

However, the possibility could be low, as the strong rise from $9.70 looks like a part of the bigger consolidation from $9.55-1/2.

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.