SINGAPORE: The CBOT soybean January contract is poised to break a resistance at $12.96-3/4 per bushel and rise towards $13.22-1/4.

The contract is riding on a wave c, which has travelled above its 61.8% projection level of $12.80-3/4. It has a better chance of extending to $13.22-1/4.

A bullish wedge has been confirmed, suggesting a higher target of $13.47-1/2. A rise to $12.98 may confirm the break above the resistance.

Support is at $12.80-3/4, a break below which may open the way towards $12.68-1/4. On the daily chart, a retracement analysis reveals an identical resistance at $12.94-3/4, the 38.2% level.

That explains why this resistance is so effective in preventing a further rise. Until the contract stands firm above the resistance, the risk of a deep drop towards a rising trendline support around $12.65 still exists.