TECHNICALS-CBOT July soybeans may retest resistance at $12.20-3/4

SINGAPORE, May 12 (Reuters) - The CBOT July soybeans SN26 may retest a resistance at $12.20-3/4 per bushel, driven by a wave C.

A projection analysis reveals a wide target zone of this wave from $12.25-1/4 to $12.51-3/4, formed by the 61.8% and the 100% projection levels.

In the meantime, a series of retracements on the downtrend from $12.26-1/4 control the moves as well. The resistance at the 86.4% level of $12.20-1/2 caused a shallow correction, which seems to have ended around $12.09-1/2.

The wave C may have resumed. A break below $12.09-1/2 could open the way toward $11.99-1/4 to $12.04-1/2 range. On the daily chart, signals turned neutral, as the market is stuck in a narrow range of $12.07-1/4 to $12.24. An escape could suggest a direction.

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.

​