SINGAPORE: The CBOT soybean January contract may test a resistance at $12.68-1/4 per bushel, a break above could open the way towards $12.80-3/4 to $12.96-3/4 range.

The unexpected rise on Tuesday signals a continuation of the wave c towards $12.80-3/4, its 61.8% projection level. A bearish wedge turned bullish due to this rise.

Once confirmed, the wedge will suggest a target of $13.22-1/4. The confirmation will be when the contract breaks $12.68-1/4.

Key support is at $12.39-1/2, a break below could cause a fall towards $12.14-1/4. On the daily chart, the wave c from $12.14-1/4 may have a complex structure.

The consolidation around $12.51-1/2 is regarded as the second part of this wave. The third part has just started, developing towards $12.94-3/4.

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