TECHNICALS-CBOT soybeans may retest resistance at $10.95-1/4

SINGAPORE, Dec 11 (Reuters) - The CBOT soybean January contract SF26 may retest resistance at $10.95-1/4 per bushel, a break above which could lead to a gain into $10.99-1/4 to $11.04 range.

A bullish divergence formed on the hourly RSI, suggesting a further bounce. It is hard to predict the endpoint of this bounce.

However, a trendline does point at a target of $10.99-1/4. Immediate support is at $10.89, a break below which may be followed by a drop into $10.81-$10.95 range.

A wave C from $11.42 has travelled below its 100% projection level of $10.86-1/4. It is highly likely to extend into the range of $10.52 to $10.65.

On the daily chart, a channel technique suggests a target of $10.56-1/4, which is pointed by a head-and-shoulders as well. A bounce has occurred around support of $10.86-1/4.

This bounce is classified as a pullback toward the middle channel. It may end below $11.05.

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.