SINGAPORE: The CBOT soybean January contract may test a resistance at $12.87-1/2 per bushel, a break above which could lead to a gain into $13.01-3/4 to $13.10-1/4 range.
The consolidation triggered by the resistance could have ended, after the contract stabilized around a support at $12.65. It is classified as a pullback towards a falling trendline.
The consolidation was shaped into a wedge, which has been more or less confirmed as a bullish pattern. It suggests a target of $13.01-3/4.
This pattern could be a part of a more bullish pennant developing from $11.81-1/4, which indicates an aggressive target of $13.83-3/4.
A break below $12.65 could be followed by a drop into $12.35-1/4 to $12.42-1/4 range.
On the daily chart, the contract climbed above a resistance at $12.72-1/2.
It may extend its gains towards $13.00-3/4.
Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.
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