Dec Soybean Meal Feels Good Going Down - Exit

 

Today, Friday 8/7/2020, at 14:03 ET I captured the 10 minute chart above. You can see the 286 target near the bottom. The market is closing at 14:20. We're only about a point from the target and you can see Stochastics had peaked and is coming down. The thin white horizontal line segment in the middle of the chart is a 50% retracement of the last leg down, which provided resistance to 3 candles in a row, making a kind of triple top on a smaller time frame. The candle bodies are looking bearish. Volume is increasing as we're tending to the downside.

The question is what do you do? The chart looks like we're about to take a big dive down. So we don't want to just exit at this point. But things often get a little squirrelly near the market close. There's a definite possibility shorts and going to cover their positions now and drive price up. If that happens we won't have time to recover. And, we're about to enter a weekend when the markets are closed and Bullish weather news could come out.

So what I did was to tighten the Stop Loss to 287.60, just over the triple top resistance level, and wait as long as I could to give our target a chance. But at 14:19:27 I didn't want to wait anymore because the Bid/Ask Spread could widen out in the last 30 seconds, and buyers might be hard to find. I decided to take what I could get at this point and covered our position at 287.10. You can see we got as close as 286.60 to our 286.00 target.

Here's what the 10 minute chart looked like at the close:

You can see price took a dip back down to 286.60 but I didn't catch it because I was holding out for the 286.00 target.

Here's the Daily chart:

We didn't hit any of the 4 different independent support points that all converge on the same area, which is described in the first post in this thread. The 286 target was just above the top of that area. Since we didn't hit any of them, it seems likely we'll go lower next week, but we got so close I didn't want to risk a $6 profit against a 60 cent incremental gain.

In summary, 292.80 entry - 287.10 exit = 5.70 x $100/pt = $570 profit. Nice win!