TECHNICALS-CBOT soybeans may retest resistance at $10.62-3/4

SINGAPORE, Jan 21 (Reuters) - The CBOT soybean March contract SH26 may retest resistance at $10.62-3/4 per bushel, a break above which could lead to a gain into $10.70 to $10.75-3/4 range.

Wave pattern suggests the progress of a wave c, which is unfolding toward $10.70, around the peak of the wave a, assuming that a flat pattern or a double-bottom is forming.

The contract has broken the upper falling trendline and completed a pullback, a bullish sign of a further gain. A break below $10.51-1/4 may trigger a fall into $10.44 to $10.47-3/4 range.

Both of these waves observe a series of projection levels on the fall from $11.49-3/4. Strategically, the target of $10.70 will be confirmed when the market breaks $10.62-3/4.

Support is at $10.51-1/4, a break below which may trigger a fall into $10.44 to $10.47-3/4 range. On the daily chart, the contract may bounce toward $10.74-1/4 to $10.97-1/4 range, as it managed to hover above a rising trendline and a key support of $10.51-1/4.

A five-wave cycle from $11.72 could have completed. The peak of the wave d at $10.82-1/2 serves as a target, which falls within the range of $10.74-1/4 to $10.97-1/4.

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.