SINGAPORE: The CBOT soybean January contract may retest a support at $12.19-1/2 per bushel, a break below which could open the way towards $11.81-1/4.

The bounce from $11.81-1/4 may have completed, as strongly suggested by the fall on Monday. The bounce was shaped into a bearish wedge, which has been almost confirmed.

It indicates a target below $11.81-1/4.

Resistance is at $12.43-1/4, a break above which could lead to a gain into $12.55-1/2 to $12.68-1/4 range.

On the daily chart, the contract has broken a support at $12.51-1/2. It is falling towards $12.24-1/2.

The two breaks above the falling trendline proved to be false.

Even though it is not clear yet if the downtrend from $14.79 has resumed, the contract may approach the low of $11.81-1/4.

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