TECHNICALS-CBOT soybeans to retrace further to $10.16-1/4

SINGAPORE, April 16 (Reuters) - The CBOT soybean May contract SK25 is likely to retrace further to $10.16-1/4 per bushel, following its failure to break resistance at $10.45-1/2.

The resistance is identified as the 61.8% retracement of the downtrend from $10.93 to $9.69. There will be a good chance of the bounce from $9.69 to complete around $10.45-1/2, if it turns out to be a part of the consolidation from $9.55-1/2.

Experience shows that a failure to break the 61.8% retracement is likely to be followed by a correction to the 38.2% level.

A break above $10.45-1/2 may open the way toward $10.63-1/2. On the daily chart, the contract is about to break support at $10.31-1/4.

A break could result in a drop to $10.16-1/2.

* 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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