TECHNICALS-CBOT soybeans to revisit low of $10.36-1/2

SINGAPORE, May 20 (Reuters) - The CBOT soybean July contract SN25 is expected to revisit the recent low of $10.36-1/2 per bushel, as it is about to break support at $10.47-1/4.

So much of bounce from $10.36-1/2 has been reversed that the chance of the bounce to extend has been eliminated. The market has been left no choice but to fall to this level.

The sideways move in the narrow range of $10.47-1/4 to $10.54 looks like a pullback towards a rising trendline. The drop from $10.81-3/4 is classified as a part of the deep correction against the trend.

A retracement analysis suggests a target zone of $10.21-3/4 to $10.33-1/4. A break above $10.53-3/4 may lead to a gain into the $10.59 to $10.64-1/4 range.

On the daily chart, the pattern from $9.66 looks like a bearish wedge, which formed after a downtrend. The lower trendline points at a target of $10.05-1/2.

* 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.

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