March soybean meal futures (ZMH26) present a buying opportunity thanks to further price strength.
The daily bar chart of March soybean meal futures shows that prices have recovered from the early January low and the bulls have gained some momentum. Also see at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator is in a bullish stance as the blue MACD line is above the red trigger line and both lines are trending up. Seasonality studies also favor soybean complex futures trending higher over the next month.
Crucially, China has continued to purchase US soybeans and appears to be making good on its promise to buy even more US soybeans in the coming months.
A move in March soybean meal futures above the chart resistance at $305.00 would give the bulls more power and also become a buying opportunity. The upside price target would be $326.00 or higher. Technical support, for which to place a protective sell stop just below, is considered the January low of $295.20.
IMPORTANT NOTE: I am not a futures broker and I do not manage any trading accounts other than my personal account. My goal is to point you to potential business opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you can initiate. Any trade I analyze is hypothetical in nature.
Here’s what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
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As of the date of publication, Jim Wyckoff had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article are for informational purposes only. This article was originally published on Barchart.com