Ceddy86

Broadening Pattern in Soybean Futures with a Target of 1440

Long
CBOT:ZS1!   Soybean Futures
Trend Analysis
The main view of this trade idea is on the 2-Hour Chart. Soybean Futures is experiencing a broadening pattern in the respective timeframe. This pattern comes with increased volatility as the trendlines are expanding outward. It is projected that the commodity will rally towards 1440, around the sighting of a gap lower. An indicative stop loss is set at around 1325, a little below the support trend line .

Technical Indicators
There has been a bullish crossover on the short (25-MA) and medium (75-MA) fractal moving averages. Soybean futures are also above the respective MAs. The RSI is above the 50 level with the KST having a positive Crossover. These are all bullish indicators for the commodity.

Recommendation
The recommendation will be to go long at market. Stop loss will be set around the 1325 price level and a target of 1440. This produces a risk-reward ratio of 2.46.

Disclaimer
The views expressed are mine and do not represent the views of my employers and business partners. Persons acting on these recommendations are doing so at their own risk. These recommendations are not a solicitation to buy or to sell but are for purely discussion purposes. At the time publishing, I have a position in Soybean futures .
Trade closed: stop reached