Yes it is possible.
Separate the 12 objects into 3 groups of 4.
Weigh 2 groups of them.
CASE 1:
If they balance, the 8 objects are good, and the bad object is in the remaining group.
Use 3 of the good objects to weigh against 3 of the remaining ones.
If it balances, the last object that has not been weighted is the bad object.
If it doesn't, one of the 3 suspected objects is either too heavy or too light.
Just compare any 2 of them on the last weigh.
CASE 2:
If it doesn't balance on the 1st weigh, either 1 of the heavier group is too heavy, or 1 of the lighter group is too light. The 4 unused objects are definitely good.
Label the light group of objects L1, L2, L3, L4.
Label the heavy group H1, H2, H3, H4.
The good objects will simply be called G.
2nd Weigh: H1 H2 H3 L1 vs H4 G G G
If it balances, we are left with L2 L3 L4, one of which is too light. Simply compare any 2 on last weigh to find out the bad object.
If left side is heavier, we know for sure that 1 of {H1 H2 H3} is too heavy. Again, compare 2 of them on last weigh.
If right side is heavier, it means either:
L1 is too light or H4 is too heavy. Compare anyone of them with a G to find out.
I hope I am clear. In fact, I think the maximum number of objects we can start with is 13 if we are given 3 weighs.