TECHNICALS-CBOT soybeans may test support at $10.38

SINGAPORE, Aug 26 (Reuters) - The CBOT soybean November contract SX25 may test support at $10.38 per bushel, a break below which could cause a fall into the $10.16 to $10.27 range.

The market's reaction to the resistance at $10.60-3/4 confirms the effect of the 0.864 ratio on the formation of a big wedge.

The contract could be experiencing a pullback toward $10.51-1/2. The uptrend from $9.80-3/4 is believed to have reversed.

A break above $10.51-1/2 may lead to a gain to $10.60-3/4. On the hourly chart, the contract failed twice to break resistance at $10.61-1/4.

The failures triggered the formation of a double-top, which suggests the reversal of the uptrend from $9.81-1/4. Strategically, the confirmation of the reversal will be when the market breaks $10.44-1/2.

* 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.