TECHNICALS-CBOT soybeans may test support at $10.28

SINGAPORE, July 7 (Reuters) - The CBOT soybean November contract SX25 may test support at $10.28 per bushel, a break below which could trigger a further fall to $10.20-3/4.

The deep fall on July 7 strongly suggests the development of a wave C, which started at $10.58-1/2 and is capable of travelling to $10.20-3/4, its 61.8% projection level.

The earlier wave A consists of five small waves, a structure signalling the formation of a zigzag. Immediate resistance is at $10.35-1/4, a break above which could lead to a gain to $10.44.

On the daily chart, the market observes a series of projection levels on the uptrend from $9.71-1/4. After falling below the support at $10.42, the contract is expected to test the next support at $10.28-3/4.

A break would be followed by a drop to $10.15.

* 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.​