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The last two trading days we’ve been waiting for some weakness in the soybean complex to signal that it might be time to short this market. After a 70¢ rally, sparked by the August WASDE, futures have rallied back to significant resistance levels, and the risk/reward looks attractive. IE our exit point if the market continues higher is relatively close, and a there’s room for a significant correction lower.
Short Soybean Recommendation
Entry: Sell two March 26 soybean futures, at the market.
Target: $10.56, a 50% retracement of the recent move higher, to $10.20, pre-report lows
Risk Exit: $10.97, buy stop to exit.
Graphic:
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