SINGAPORE: The CBOT soybean January contract may test a resistance at $13.22-1/4 per bushel, a break above which could lead to a gain into $13.38 to $13.47-1/2 range.
The contract is riding on a wave c, which is unfolding towards $13.22-1/4, its 100% projection level. This wave could either end around $13.22-1/4 or extend into a higher zone of $13.63-1/2 to $13.88-3/4.
A bullish wedge suggests a possible extension. Support is at $13.07-1/2, a break below which could cause a fall into $12.80-3/4 to $12.96-3/4 range.
On the daily chart, a retracement analysis reveals an immediate target of $13.30, the 50% level. The pattern from the Oct. 13 low of $11.95-3/4 to Nov. 30 low of $12.14-1/4 looks like an inverted head-and-shoulders.
Not a typical one, this pattern still indicates a target of $13.65-1/4.
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