TECHNICALS-CBOT soybeans may retest resistance at $10.57-3/4

SINGAPORE, Jan 16 (Reuters) - The CBOT soybean March contract SH26 may retest resistance at $10.57-3/4 per bushel, a break above which could trigger a gain into a range of $10.62-3/4 to $10.70.

The sharp gain on Thursday might have been driven by a wave c, the third wave of a three-wave cycle from $10.38, where a downtrend from $11.72-1/2 ended.

This wave is capable of travelling to $10.70, near the peak of the wave a. Immediate support is at $10.51-1/4, a break below which may be followed by a drop into $10.44 to $10.47-3/4 range.

On the daily chart, the second false break occurred around a rising trendline and a key support of $10.51-1/4, the 61.8% retracement of the uptrend from $9.76-1/2 to $11.72.

Trending signals have turned bullish, indicating a gradual reversal of the downtrend from $11.72.

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.