TECHNICALS-CBOT soybeans may bounce to $10.65-1/4 before falling

SINGAPORE, Jan 27 (Reuters) - The CBOT soybean March contract SH26 may bounce to $10.65-1/4 per bushel, as it has stabilised around support of $10.58-1/2 and cleared a resistance at $10.62.

The fall from $10.76-1/4 seems to have observed a series of retracements on the uptrend from $10.47-3/4. After breaking resistance at $10.62, the contract is expected to test the next resistance at $10.65-1/4.

The drop may resume upon the completion of the bounce, as a channel technique suggests a bearish target of $10.54-1/4, which is yet to be fulfilled.

On the daily chart, the contract failed to break a resistance at $10.69-3/4 again. A correction has been triggered, which might be shallower than the one from the Jan. 12 high of $10.71-1/4.

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

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