TECHNICALS-CBOT soybeans may retrace to $10.27-1/2 before rising

SINGAPORE, Aug 13 (Reuters) - The CBOT soybean November contract SX25 may retrace moderately to the support at $10.27-1/2 per bushel, before retesting resistance at $10.38-1/2.

Working together with the resistance is the 138.2% projection level of a wave c from $9.93-3/4, the 10.41-1/2 level. Together, these barriers are likely to trigger a shallow fall.

The wave c may resume, as it is expected to extend to a range of $10.49-1/2 to $10.52-1/4. A break below $10.27-1/2 may not necessarily suggest a reversal of the uptrend, but it is likely to cause a fall to $10.16-1/2.

On the daily chart, the structure of the wedge seems to be governed by the 86.4% Fibonacci retracement, which defines the relation between the wave (B) and the wave (A), as well as the relation between the wave (C) and the wave (B).

This discovery suggests a further gain of the market toward $10.61.

* 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.