The price has completed a Head and Shoulders pattern on 1W (RSI = 45.662, MACD = -8.520, Highs/Lows = 0.0000). The neckline is within 293.90 - 341.40, a range that Soybean Meal roughly traded in for 540 days (August 2016 - February 2018). This can be used as a basis for a long term sideways strategy of selling near the Resistance and buying near the Support.
Soybean Meal (ZM1!) made a Lower High on the 1W Channel Down (RSI = 39.076, MAC = -8.620, Highs/Lows = -5.800, B/BP = -25.7200) and should now reverse lower towards a new Lower Low. The first short target is 293.80 as the Lower Low extension since the last bottoms supports there. If crossed, we will continue shorting, TP = 275.20.
Yellow box, buy-zone
Cot net long position is not "so net long", but charts shows very good price action support plus SOYBEANS net long position seems signaling a reversal. So using positive hystorical correlation between SOYBEANS and SOYBEANS MEAL this point could be a good entry point with very good R/R.
Based on the ADX and TSI, I think that bean meal is setup to make a run at the highs from last year if not the gap on the SM1! chart from June 2014. weekly price has found support on 100EMA and has pushed through 200EMA already but has pulled back.
Comments on the chart. All the grains may have turned for a move up. The red 5 waves on the chart is the bigger wave degree while the black one is the smaller wave within the bigger wave 3. I dont mean to confuse here but this just means I am looking for a serious move. Let us see what price will do
Since october we have been moving in a sideway motion. I think this range is coming to an end. The bulls dried out the bears, and are now ready to take the price to the next level higher at 360. The impulsive breakout yesterday is paving the way for more gains to come.
Note the bullish hidden divergence, which also shows the increasingly strong hand of the bulls ...