TECHNICALS-CBOT soybeans may test resistance at $10.53-1/4

SINGAPORE, Aug 29 (Reuters) - The CBOT soybean November contract SX25 may test resistance at $10.53-1/4 per bushel, a break above which could lead to a gain to $10.61-1/4.

The price fluctuation has been observing a series of projection levels on the uptrend from $9.94. After breaking resistance at $10.48-1/2, the contract is likely to test the next resistance at $10.53-1/4.

A failure to break $10.53-1/4 may be followed by a drop into $10.40-1/2 to $10.44-1/2 range. A break below $10.48-1/2, now support, may cause the same drop.

On the daily chart, signals have turned neutral and will become clearer when the market escapes from the range of $10.38 to $10.51-1/2.

The bias may be toward the downside, as the 0.864 ratio still remains effective in the formation of a big wedge. Following its failure to break $10.60-3/4, the contract may retrace toward $9.92-1/4, the 86.4% retracement 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.