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Greetings Traders!
I'm sure most of us who trade commodities are real anxious to see
what Soybeans has in store for us. There is no doubt that we should
see some reaction from that crop report of last Friday.
The question is: Do I enter prior to the open of the market tomorrow
(7/14) or do I wait and see what it does?
That I'm afraid is a question each one must answer for themselves.
Currently, Soybeans is sitting at resistance. It's closing at the
high however should at least make one cautious. Yet, the trend is
down so it would be wise IMHO to only look to short this market. But
where?
I'm for waiting to see what it does tomorrow. After that, it will
make planning an entry much safer. There is the risk however of
missing out on the trade.
Another possibility is to fade the next resistance level and if it
doesn't open and hit you there, then you can quickly re-adjust your
order. This way if it does spike up first before dropping, which it
should, you may get in at a much more favorable price.
I've included a graph of a range of prices. The price with the arrow
is the last price indicator where we are in this range. These values
are pressure points. If you choose to fade, choose one of these. If
you choose option selling, you might want to choose a strike above
one of these as well.
772 and a quarter is the next resistance level upwards.
Best of Trading!
cheers!
:)
rick
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