TECHNICALS-CBOT soybeans biased to retest support at $10.41-3/4

SINGAPORE, April 23 (Reuters) - The CBOT soybean July contract SN25 is biased to retest support at $10.41-3/4 per bushel as a top seems to be forming.

The contract has been consolidating within a range of $10.41-$10.59. The consolidation was mainly due to a strong barrier at $10.59, the 61.8% retracement of the downtrend from $11.05.

With this resistance standing firm, it is unrealistic to classify the pattern from $9.85-1/4 as a bullish pennant. Instead, the triangle may turn out to be a top pattern.

A break below $10.48-1/4 would be the very early sign of the top. On the daily chart, the contract is retesting resistance at $10.55. It is not very clear if this is a bluff by bulls or their genuine attempt.

A close above $10.55 on April 23 would confirm a break and a target of $10.71-1/2.

Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own.

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