TECHNICALS-CBOT soybeans may test support at $10.38-1/2

SINGAPORE, Aug 14 (Reuters) - The CBOT soybean November contract SX25 may test support at $10.38-1/2 per bushel, a break below which could cause a fall to $10.27-1/2.

The rise is loosing its momentum around resistance at $10.49-1/2, which is identified as the 161.8% projection level of a wave c from $9.93-3/4. It serves as a possible endpoint of this wave.

Strengthening the resistance is the barrier at $10.52-1/4, the 76.4% retracement of the downtrend from $10.74-1/4 to $9.81. The bearish divergence on the hourly RSI suggests a slim chance of the market to overcome these barriers and rise further.

A break above $10.52-1/4 could open the way towards $10.74-1/4. On the daily chart, the contract is consolidating within a big wedge, which follows the 0.864 Fibonacci ratio in its formation.

A calculation on the downtrend from $10.73-1/4 suggests a target of $10.60-3/4, which will become available when the market completes the correction and resumes its rise.

* 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.