TECHNICALS-CBOT soybeans may bounce further into $10.70 to $10.75-3/4 range

SINGAPORE, Jan 6 (Reuters) - The CBOT soybean March contract SH26 may bounce further into a range of $10.70 to $10.75-3/4 per bushel, as a downtrend from $11.72-1/2 could have reversed.

The reversal has been suggested by the five-wave structure of the trend and the strong bounce from around $10.39. A break above $10.70 could confirm an escape from a falling channel.

A duplicated channel suggests a target of $11.00-1/2. Support is at $10.57-3/4, a break below which may trigger a fall into the $10.44 to $10.51-1/4 range.

On the daily chart, a hammer formed on January 2 around a rising trendline, which has been confirmed as a bullish reversal signal by the following big white candle.

These candlesticks formed a more powerful morning star, together with the big black candle on December 31, 2025. It is quite certain that the downtrend from $11.72-3/4 has reversed.

Initial target will be the peak of the wave d at $10.82-1/2, the December 26 high.

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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