Thursday, June 14, 2012
Bearish Divergence in Soybean Meal Futures
July soybean meal futures have been consolidating near their highs for the last month. Momentum has stalled and positions have unwound towards neutral.
Commercial traders have been taking a bearish tone towards the market that was confirmed by yesterday’s failure. Yesterday’s decline saw the market fail on much lower momentum reading in the ARSI indicator.
We will use this as an opportunity to side with commercial traders and place ourselves on the short side of the market. As always, we will be placing a protective stop at the swing high of 439.9
For point values, margins and market hours go to Futures Market Hours.
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