SINGAPORE: The CBOT soybean January contract may test a resistance at $12.67 per bushel, a break above which could lead to a gain into $12.81-1/2 to $12.93-1/2 range.

A five-wave cycle from $13.83-3/4 has completed, as confirmed by the strong rise from $11.80-3/4. The contract is close to the peak of the wave 4 and a trendline resistance at $12.67.

The contract may fail to break $12.67 in its first attempt. The failure could be followed by a flat consolidation below the resistance or a drop towards $12.43-1/4.

On the daily chart, a medium-term correction from the June 7 high of $14.79 has completed, as confirmed by a projection analysis which reveals the equal length of the wave A and the wave C.

The upper channel suggests a target of $13.03, which is still too far away to be realistic. After climbing above the lower channel, the contract is yet to pull back towards it. The consecutive rise may be interrupted by this pullback.

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