I Remain Bullish Soybean Oil

I Remain Bullish Soybean Oil
I Remain Bullish Soybean Oil

Soybean Oil Futures—Soybean oil futures in the December contract is trading higher for the 6th consecutive session up 5 points at 28.84 as prices are right near a 2 week high. I have been recommending a bullish position for quite some time around the 28.50 level and if you took that trade we’re going to continue to place the stop loss under the May 13th contract low of 26.96 as an exit strategy.

The chart structure at the current time is outstanding due to the exceptionally low volatility that we are currently experiencing as traders are awaiting the highly-anticipated crop progress report which will be released after the closing bell as hot and dry weather has entered the midwestern part of the United States.

Soybean oil prices are trading above their 20 day but slightly below their 100 day moving average which also stands at major resistance around the 29.00 level as the large money managers are still short around 42,000 contracts as they still believe that soybean prices are headed lower. If soybean oil prices break the June 21st high of 29.32 as I might recommend adding more contracts to the upside as the risk/reward are still in your favor in my opinion.

TREND: —HIGHER

CHART STRUCTURE: EXCELLENT

VOLATILITY: LOW

 

If you are looking to contact Michael Seery (CTA—COMMODITY TRADING ADVISOR) at 1-630-408-3325 I will be more than happy to help you with your trading or visit www.seeryfutures.com

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