TECHNICALS-CBOT soybeans may retrace to $10.63

SINGAPORE, May 23 (Reuters) - The CBOT soybean July contract SN25 may retrace to $10.63 per bushel, following its failure to break resistance at $10.73-3/4.

The barrier is identified as the 61.8% projection level of a wave c from $10.45-3/4. Partly due to this barrier, mostly due to the completion of a five-wave cycle from $10.51, the contract is experiencing a correction that could extend into a range of $10.56-1/4 to $10.63, as pointed out by a rising channel.

A break above $10.73-3/4 would confirm an extension of the wave c toward $10.80-1/4 to $10.84-3/4 range. On the daily chart, the contract is about to break resistance at $10.71-1/2 and rise toward $10.91-3/4.

Considering the weakness on the hourly chart, the contract may retrace moderately before overcoming the barrier. A break will be considered a major achievement by bulls, as it confirms an extension of the wave C toward $10.91-3/4 to $11.05-3/4 range.

* 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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