TECHNICALS-CBOT soybeans may test support at $12.14

SINGAPORE, March 13 (Reuters) - The CBOT soybean May contract SK26 may test a support at $12.14 per bushel, a break below which could trigger a fall into the $11.67-1/2 to $11.95 range.

The contract faces a strong resistance at $12.39-3/4, the 100% projection level of a wave C from $10.50-1/2. This wave may either end around this barrier or extend far above it.

Given that the daily RSI has been extremely overbought, a break above $12.39-3/4 would be less likely than a test on the support of $12.14.

On the hourly chart, a bearish divergence formed on the MACD, suggesting an exhaustion of the rally and a forthcoming decent correction.

A retracement analysis reveals a target zone of $12.08-1/4 to $12.15-1/4.

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.