TECHNICALS-CBOT soybeans may test support at $10.48

SINGAPORE, April 28 (Reuters) - The CBOT soybean July contract SN25 may test support at $10.48 per bushel, a break below which could open the way toward $10.36.

A five-wave cycle from $9.85-1/4 is believed to have completed, as indicated by a break below a rising trendline. A retracement analysis on the cycle reveals a target zone of $10.26-1/4 to $10.36.

Resistance is at $10.55-1/2, a break above which could open the way toward $10.61-3/4 to $10.67-1/2 range. On the daily chart, the contract is riding on a wave C which failed to travel above its 61.8% projection level of $10.71-1/2.

This wave could either end around this barrier or extend to $11.24-3/4. Regardless of the endpoint, the market seems to be experiencing a correction towards $10.38-1/2.

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.