We don’t have any current positions on after being stopped out of short soybeans and short soybean oil, happens. But follow through to the upside did not happen in either of these markets, so we want to get short again.
If you’ve been keeping up here, you know that we are quite bearish soybeans and soybean oil starting in April. We want to be sure to be “in” this market with short positions on, so here we are.
Since being stopped out, Soybeans have posted an outside day down and two days of follow through. July soybean oil has settled in and not yet given a sell signal. A close under 70.75 would be a 5 wave sell signal.
**Busy Friday and these are two trades we’ve explained our thinking on in the past, so we’re not going full bore on the details today. If you want more detail, at the bottom of this page is a link to the main page that has the previous and more detailed recommendations.
Short Soybean Oil Recommendation
Entry: Sell 2 July soybean oil futures at the market, currently 71¢.
Alternative Entry: A close under the low of the day that traded highest. (word salad I know. 4/22 was the day that traded highest, the low that day was 70.75, so a close under that is a 5 wave sell signal. If we make a new high, a close under that days low would be the entry)
Target: Moderate set back target is 66¢. Next major support is 64¢. Plenty of room below that yet.
Risk Exit: Exit on a close over 72.
Short Soybean Recommendation
Entry: Sell 2 November soybean futures at the market, currently $11.53.
Alternative Entry: $11.50 stop to enter, or $11.60 limit.
Target: Moderate set back target is $11.40 for those who like to scalp. Our interest in this trade is a long term hold on belief in bearish acreage and demand fundamentals.
Risk Exit: Exit on a close over $11.70. (this probably should have been the first exit)
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