TECHNICALS-CBOT soybeans may climb to $10.70

SINGAPORE, Jan 19 (Reuters) - The CBOT soybean March contract SH26 may climb to $10.70 per bushel, as it is about to break resistance at $10.57-3/4.

Wave pattern suggests the progress of a wave c, which is unfolding toward $10.70, around the peak of the wave a. A further gain above this level would confirm a double-bottom, which would indicate a much higher target of $11.00-1/2.

Support is at $10.51-1/4, a break below which may trigger a fall toward the $10.39-1/2 to $10.44 range. On the daily chart, the contract managed to hover above a rising trendline and a key support of $10.51-1/4.

The stabilization around the trendline increases the chance of a decent bounce or a resumption of the uptrend.

Wang Tao is a Reuters market analyst for commodities and energy technicals. Views expressed are his own.

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