TECHNICALS-CBOT soybeans may retest support at $9.89-1/4

SINGAPORE, Jan 6 (Reuters) - The CBOT soybean March contract SH25 may retest support at $9.89-1/4 per bushel, following its failure to break resistance at $10.14-3/4.

The failure suggests a false break above a falling trendline. Due to this false break, the downtrend from $10.99-1/2 will be more likely to resume than to reverse.

A break below $9.89-1/4 could open the way towards $9.73-3/4, while a break above $10.14-3/4 could lead to a gain into the $10.30-1/2 to $10.41-1/4 range.

On the daily chart, the contract failed to break a falling trendline at its first attempt. However, the bullish divergence on the daily RSI suggests the second attempt to test the trendline.

Increasing the chance of this attempt is the possible completion of a five-wave cycle at $9.47. The tricky part is the depth of the current shallow correction, which is only apparent for its potential completion above $9.47.

* 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.

(Reporting by Wang Tao; Editing by Subhranshu Sahu)

((wang.tao@tr.com; +65 6973 8364/9188 4196))