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

SINGAPORE, Jan 22 (Reuters) - The CBOT soybean March contract SH26 may retest resistance at $10.70 per bushel, a break above which could lead to a gain into $10.75-3/4 TO $10.81-1/2 range.

A double-bottom or a flat pattern around $10.39 is taking shape. Given that a five-wave cycle from $11.72-1/2 has completed, the pattern is most likely a double-bottom.

The neckline is around $10.70. Once confirmed, the pattern will suggest a target of $11.00. Support is at $10.62-3/4, a break below which could trigger a fall into $10.51-1/4 to $10.57-3/4 range.

On the daily chart, the contract seems to be bouncing toward the peak of the wave d at $10.82-1/2. A retracement analysis reveals a higher target of $10.89-3/4.

Strategically, these targets will become available when the market breaks $10.69-3/4.

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.