This is a follow up to the previous post. Today's price action completely fills the gap. Price initially breaks the support line of the wedge pattern on the chart. Then you see price dropping down without any pullbacks or small rallies to fill the gap in the soybean meal market. Beautifully executed, beautifully accomplished.
Nice break out of the wedge. Be aware of any pullbacks, rallies and trading ranges on the way down. Remember gaps always fill at some point. On the chart you have an area where prices gapped up and caused a blank spot on the chart. Notice the place on the chart marked "Gap." That is the area that will fill. A short position could be considered from the current price.
As you can see this strategy works for commodities as well. You can see here though how having a strategy in place to maximise profits can make the difference between a highly profitable strategy and one which just ticks over. Cut losses short and let profits run.
Good luck !
Its rare to see technical analysis on here for soya futures so have a gander at this and see what you think. Bullish cypher is almost at completion and with extremely poor yields in argentina, Chinese tariffs and an array of further complications this year, perhaps this looks a likely call for longer term soybean meal. Should the position fill expect an extended...
Meal broke uptrend and neckline of H&S. Waiting for confirmation to break S1 at 373.9. Bullish Cypher possible pattern. Market under the 20 day MA. Minimum target height of shoulders at 365.2
July SM is nearing breach of 20 day MA. Either we will have a bounce using 20 day as support or a breach. Fail twice at highs of 397.6 and double top rejection would gives us hope of breach of 20 day and Gartley. S3 should take us to oversold RSI.
May Soybean Meal Elliot Wave Head and Shoulders. Meal looking to break 20 day MA. Two outcomes possible, Wave rise to R2 - R3, or H&S. In theory wave 5 is shorter than wave 3, so both may occur with a final H&S.
May Soybean appears to be creating an Elliot Wave. Gap up day suggests higher highs to R3. Bullish Cypher possible pattern, which may form a head and shoulders. Uptrend in play.
New pivots have arrived and we are projecting Bearish Butterfly for Meal. RSI rolling downwards. Meal dependant on Argentina weather and purchases. See Meal bullish long term to at least R2 at 355.8. Downside target right now at 317.6. Volatility is high and again dependant on the factors stated.
PM's Crush Spread (+1 ZS Soybeans, -1 ZL oil -1 ZM meal to sell this spread). September 2017 futures contracts.
This chart is weighted by Market value of each contract (the y scale shows profit / loss per 1 lot).
1. Seasonable window for lower prices in this spread from end of May until end of June.
2. RSI Divergence.
