TECHNICALS-CBOT July soybeans may retrace further to $12.04-1/2

SINGAPORE, May 6 (Reuters) - The CBOT July soybeans SN26 may retrace further to $12.04-1/2 per bushel, as indicated by a trendline and a projection analysis.

The contract failed twice to break a key resistance at $12.26-1/2, the 138.2% projection level of a wave C from $11.71-1/4. The failure, along with the following deep fall, suggests a completion of this wave.

The wave C may extend only if the market holds around $12.04–1/2 and stages a bounce. A break below $12.04-1/2 may trigger a fall into $11.94 to $12.00-1/4.

On the daily chart, a retracement analysis on the uptrend from $10.64-3/4 reveals a resistance at $12.23-1/2, the 14.6% level.

The contract failed to break this level. One reason for the failure could be the full bounce triggered by support at $11.57-3/4.

A break below $12.06-3/4 could open the way 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.

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