TECHNICALS-CBOT soybeans may test support at $10.38

SINGAPORE, Aug 27 (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.

It has been observed that the formation of a big wedge follows the 0.864 ratio. The market's reaction to the resistance at $10.60-3/4 confirms the effect of this ratio.

A retracement analysis on the uptrend from $9.81-1/4 reveals a bearish target of $9.92-1/4. A break above $10.51-1/2 may lead to a gain to $10.60-3/4.

On the hourly chart, the contract looks sideways in a narrow range of $10.44-1/2 to $10.53-1/4. A break above $10.53-1/4 could lead to a gain into $10.61-1/4 to $10.66-1/4 range.

However, the bias might be toward the downside, as the contract has broken a rising trendline. The break suggests a reversal of the uptrend from $9.81-1/4.

* 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.