Soyabeanmeal CBoT: missed the short entry and now waiting
Soybeanmeal:
Price did not perform as we were expecting last week and lost its support of the lower line of the ascending price channel after which it broke out to the downside already early in the week. We believe that wave (3) has been competed and that price will now perform its corrective wave down to the 340 region. We missed a possible short play and jumping on this wave here and now would be too risky as our stop level is at 406 which is some 8% above the current level which is not acceptable as possible loss. If and when price would perform a corrective move up during the coming week to the 395/400 level traders could still consider a short play that would risk a 2.5% loss in price with a stop at 406. We favor price to move to the 350/340 level from here during the coming 3-5 weeks from where we will see whether a long play becomes opportune indeed. Nothing to be done for now.
Price did not perform as we were expecting last week and lost its support of the lower line of the ascending price channel after which it broke out to the downside already early in the week. We believe that wave (3) has been competed and that price will now perform its corrective wave down to the 340 region. We missed a possible short play and jumping on this wave here and now would be too risky as our stop level is at 406 which is some 8% above the current level which is not acceptable as possible loss. If and when price would perform a corrective move up during the coming week to the 395/400 level traders could still consider a short play that would risk a 2.5% loss in price with a stop at 406. We favor price to move to the 350/340 level from here during the coming 3-5 weeks from where we will see whether a long play becomes opportune indeed. Nothing to be done for now.