TECHNICALS-CBOT July soybeans may retrace into $12.09-$12.15 range

SINGAPORE, May 13 (Reuters) - The CBOT July soybeans SN26 may retrace into a range of $12.09 to $12.15 per bushel, following its failure to break a resistance at $12.31-1/2.

The failure, coupled with the completion of a five-wave cycle, suggests a forthcoming decent correction. Given that a series of projection levels on the uptrend from $11.71-1/4 still work well, a target zone of $12.09 to $12.15 has been established.

A break above $12.25-1/4 may lead to a gain to $12.31-1/2. On the daily chart, there is a false break above the resistance at $12.24, based on the bearish readings on the hourly chart.

The contract is expected to consolidate around this barrier for one or two days or retrace toward $12.07-1/4.

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

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