TECHNICALS-CBOT July soybeans may drop to $11.94

SINGAPORE, April 30 (Reuters) - The CBOT July soybeans SN26 may drop to $11.94 per bushel, following its failure to break resistance at $12.04-1/2.

Identified as the 86.4% projection level of a wave C from $11.67-3/4, the resistance is strengthened by a similar one established by a rising trendline.

The market is highly likely to retrace to $11.94, or at least hover below $12.04-1/2 for a one or two days. A break above $12.04-1/2 may lead to a gain into $12.10-1/4 to $12.16-1/4 range.

On the daily chart, a retracement analysis on the uptrend from $10.64-3/4 reveals a resistance at $12.06-3/4, the 23.6% level, which is near $12.04-1/2 (hourly chart).

The contract briefly pierced above the upper channel line, but failed to break $12.06-3/4. It may retrace toward $11.79-1/2.

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.