TECHNICALS-CBOT soybeans may retest support at $11.26-3/4

SINGAPORE, Dec 2 (Reuters) - The CBOT soybean January contract SF26 may retest support at $11.26-3/4 per bushel, a break below which could open the way toward $11.17-1/4 to $11.21-1/2 range.

The contract failed to break resistance at $11.41-1/2, the 50% retracement of the downtrend from $11.70 to $11.13-1/4. The failure, along with the following drop, suggests a completion of the bounce from $11.13-1/4 and a continuation of the downtrend from $11.70.

The tend is riding on a wave C, the third wave of a three-wave cycle from $11.70. This wave is capable of travelling to $11.13-1/4.

Resistance is around $11.32, which is provided by a short rising trendline. A break above this level may lead to a weak gain to $11.35.

On the daily chart, a bearish engulfing formed between November 28 and December 1, suggesting a completion of the weak bounce from the November 21 low of $11.13-1/4.

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.