SINGAPORE: The CBOT soybean January contract may test a resistance at $12.73-1/4 per bushel, a break above which could lead to a gain to $12.81-1/2.

The contract briefly dropped below a falling trendline and swiftly climbed above this line thereafter. As long as it hovers above the trendline, the uptrend from $11.81-1/4 may extend above $12.89-1/4.

A retracement analysis on the fall from $13.83-3/4 to $11.81-1/4 reveals a break above $12.58-1/2, the 38.2% level. The break opened the way towards $12.82-1/2.

A break below $12.58-1/2, now a support, may cause a fall into $12.35-1/4 to $12.47-3/4 range.

On the daily chart, the contract managed to stabilise above a falling trendline.

The drop from the Nov. 17 high of $12.89-1/4 is classified as a pullback towards this line.

The contract is poised to retest a resistance at $12.72-1/2.

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