TECHNICALS-CBOT soybeans may test support at $11.18-3/4 in Q2

SINGAPORE, March 18 (Reuters) - CBOT soybeans first month Sc1 may test support at $11.18-3/4 per bushel in the second quarter, a break below which could open the way towards the $10.32-1/2 to $10.82-1/4 range.

The contract failed to break a trendline falling from $17.84. The failures suggest either a steady downtrend or the start of a deep correction.

Wave pattern indicates the completion of a wave c from $9.60-3/4. It is possible that the whole bounce from $9.36-1/4 may have ended as well.

The bounce had closely observed a series of projection levels on the downtrend from $13.98-1/2. The current drop may also follow the series.

The support at $11.72-1/4 has been broken. The next support is at $11.18-3/4. A break above $12.15-1/2 could lead to a gain into the $12.58-1/2 to $13.12 range.

On the daily chart, a projection analysis on a wave C from $9.60-3/4 confirms its completion around a key barrier around $12.22-3/4, the 176.4% level.

The market seems to be retracing toward a range of $10.49-3/4 to $10.69-3/4, formed by the 86.4% and the 76.4% levels.

A moderate bounce is occurring around the support at $11.46-1/2, which may be limited to $11.75-3/4.

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

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.

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