March soybean meal (ZMH27) futures present a selling opportunity on more price weakness.
See on the daily bar chart for March soybean meal futures that prices are trending down and this week hit a seven-week low. The trend is the bears’ friend. See, too, at the bottom of the chart that the moving average convergence divergence (MACD) indicator is in a bearish posture as the blue MACD line is below the red trigger line and both lines are trending down.
Fundamentally, the U.S. soybean crop is presently being harvested and it’s expected to see record-large production. Big crops are also being planted in South America, to compete with U.S. soybean sales abroad in the coming months.
A move in March soybean meal futures below chart support at this week’s low $341.50 would become a selling opportunity. The downside price objective would be $308.00 or below. Technical resistance, for which to place a protective buy stop just above, is located at $355.00.
IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
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On the date of publication, Jim Wyckoff did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.