TECHNICALS-CBOT soybeans may bounce into $10.57-3/4 to $10.62-3/4 range

SINGAPORE, Jan 5 (Reuters) - The CBOT soybean March contract SH26 may bounce into a range of $10.57-3/4 to $10.62-3/4 per bushel, following its stabilisation around support of $10.39-1/2.

Strengthening the support is a similar one established by a falling channel. Even though it could be too early to conclude that a wave E has completed, it is reasonable to expect a decent bounce.

Immediate support is at $10.44, a break below which could trigger a fall toward $10.32-1/4 to $10.39-1/2 range.

On the daily chart, a hammer formed on January 2 around a rising trendline, which is considered a reliable reversal pattern.

A white candle is likely to appear on Monday, confirming this bullish reversal pattern. Initial target will be $10.82-1/2, the peak of the wave d.

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.

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