TECHNICALS-CBOT soybeans may retest support at $11.58

SINGAPORE, March 3 (Reuters) - The CBOT soybean May contract SK26 may retest support at $11.58 per bushel; a break below that could open the way toward $11.46-3/4.

Signals are rather mixed, as the market quickly shot over the upper trendline of an expanding wedge but failed to maintain above it.

Instead of falling further toward the lower trendline, the market is retesting resistance at $11.76-1/4. The bearish divergence on the hourly MACD simply does not support a strong gain or a break above the resistance.

The bias might be toward the downside, given that the rise from around $11.40 has been zigzagging and sluggish, a sign of weak momentum and cautious market sentiment.

A break above $11.76-1/4 could open the way toward $11.83 to $11.94-1/4. On the daily chart, a dark cloud cover formed between Feb. 27 and March 2, which looks like a reliable reversal pattern after many dojis appeared between Feb. 13 and Feb. 26.

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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