TECHNICALS-CBOT soybeans to test support at $11.06-1/2

SINGAPORE, Feb 9 (Reuters) - The CBOT soybean March contract SH26 is expected to test a support at $11.06-1/2 per bushel, a break below could trigger a fall into the $10.93 to $10.99-1/2 range.

A five-wave cycle from $10.51-1/2 may have completed around a resistance at $11.36, its 176.4% projection level, as confirmed by the deep fall from the February 6 high of $11.37-3/4.

The bottom of the wave 4 around $10.88-1/4 serves as a target. Resistance is at $11.17-3/4, a break above may lead to a gain into the $11.23-1/2 to $11.29 range.

On the daily chart, a shooting star formed on February 6, around a strong resistance at $11.41-3/4. Generally, this reversal pattern needs to be confirmed by a black candle on the following day.

However, considering that the market has surged so much over the past few trading sessions, the shooting star looks reliable, as the contract is due for a decent correction.

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.

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