This trade makes the universe feel out of balance. Just went long July Soybean Oil this evening. But this morning I got a Put option on Soy Meal (see thread titled "ZM Coiled Spring"). One of them is probably wrong.
Here's what I see on the daily chart for the Soy Oil:
Morning star candle pattern on low stochastics.
Double bottom (3/18/20 and 4/27/20).
Close over 8 ema.
Next candle continuation.
Went long the ZL July Futures this evening at 26.24.
1st Target is 50% Fib of the yellow range at 27.70, which is close to the previous swing high and not very far from the 50 SMA and the Bollinger Band.
2nd target is 100% level of the yellow range, which is also the 200 SMA.
Stop was chosen from the 10 minute chart. Just below a swing low at 25.70. A better stop would be below the double bottom at about 24.90 but don't want that much of a loss.
Risk: 26.24-25.70=.54*$600/pt=$324.
Reward: 27.70-26.24=1.46*$600/pt=$876.
R:R=876/324=1:2.7 (very good)
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