TECHNICALS-CBOT soybeans may test resistance zone of $9.94-3/4 to $9.98

SINGAPORE, Aug 4 (Reuters) - The CBOT soybean November contract SX25 may test resistance zone of $9.94-3/4 to $9.98 per bushel, a break above which could lead to a gain to $10.03-1/2.

The price moves have been controlled by a series of projection levels on the fall from $10.35-1/4. The support at $9.86 is generally not recognised as a key barrier in terms of projection analysis.

However, with the appearance of bullish divergence on the hourly RSI, the support works much better. A bounce has started, which may extend to $10.03-1/2 if it is strong, or end around $9.94-3/4 if it turns out to be very weak.

A break below $9.86 could trigger a fall into $9.75 to $9.80-1/2 range. On the daily chart, the contract is consolidating within a rising wedge.

A spinning top formed around the lower trendline on August 1, signalling the completion of a wave C, which will be partially reversed by the following upward wave B.

* 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.