Time to short SoyMeal

Hi Folks, today we’re taking a look at soybean meal not only tried to add soy beans, but is part of the soybean complex. You have soy beans, you have soy being mill which was a byproduct that was soy beans primarily used in food and animal feeds. And then you have soybean oil which is mostly consumed as a cooking oil, primarily vegetable oil now while soy beans moves at $12.50, a tick soybean mill moves at $10 a tick so we’re looking at a couple things here from a seasonal and technical perspective. You see on the weekly chart on the left daily chart on the right, we are trading up here into this longer term structure area structure here on the weekly that we actually ran into last week tested again yesterday on Monday here at these highs at 427 80. And then trading off of those lower also here the 786 retracement on the fib. Looking at the end from a seasonal perspective. You see we are coming in to a bearish time of the year here at January 20 ends on around February 7. So looking to take it around the end of January into early to mid February at 3% win rate over six years, average profits been about 1000 bucks. Now what we’re looking at is we would be looking to short around this area here we’ve got longer term trend line support here, we’ve got short shorter term trend line support here, we looking to put a risk somewhere above 435 to 440. wherever you’re comfortable, we’re looking to take it first targets right down here into 370 would expect to see some support coming in right around here. This old resistance then turns into support that also bumps us into this longer term trend line. But notice that we also have bearish divergence. So when we trade into longer term structure, coupled with that bearish divergence signal, those are really really good high probability trade ideas. So that’s what we’re looking for on soy mill. Now you could expect soybeans, the more liquid contract to also be dragged out further but we like playing mill there is no ETF or soymeal so you want to trade the futures or futures options. Got any questions about this market? Feel free to shoot me an email. I’ll see you on the next episode