TECHNICALS-CBOT July soybeans may test support at $11.83

SINGAPORE, May 7 (Reuters) - The CBOT July soybeans SN26 may test a support at $11.83 per bushel, a break could open the way toward $11.73.

The fall from $12.26 is classified as a deep correction against the uptrend from $11.56-3/4. A retracement analysis on the trend reveals a break below the 50% level of $11.91-1/4.

The break opened the way toward $11.83, around which the market is expected to stabilize and bounce strongly, as a rising trendline establishes a support around $11.83 as well.

Resistance is fixed at $11.96, a break above which could suggest a reversal of the downtrend from $12.26, but may not lead to a strong gain to $12.09-1/2.

On the daily chart, a projection analysis on a wave C marks a support of $11.81-1/2, which is close to $11.83 on the hourly chart. This support would help stabilize the market.

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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