TECHNICALS-CBOT soybeans may retrace toward $10.38-3/4

SINGAPORE, July 3 (Reuters) - The CBOT soybean November contract SX25 may retrace toward $10.38-3/4 per bushel as it failed to break key resistance at $10.54.

The resistance is identified as the 161.8% projection level of a wave c, which is highly likely to end around this barrier. The neckline of a double-bottom forming between June 26 and July 1 is at $10.38-3/4, which serves as a correction target.

This pattern suggests a rise to $10.60, which may resume when the correction is over. Its neckline generally attracts a pullback that could extend to any level down to $10.38-3/4.

A break above $10.51 may lead to a gain into $10.54 to $10.57-1/2 range. On the daily chart, the rise roughly observes a series of projection levels on the uptrend from $9.71-1/4.

The contract could be experiencing a pullback toward $10.42, which is near $10.38-3/4 (hourly chart).

* 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.​