Sunday, October 4, 2020

Soybean Oil Dec Short



Price formed a Bear Flag and broke out through it to the downside. There are 2 good target areas.

Target 1 is the 50% Retrace of the green range (30.75), which is very near the 200sma (30.50). We're using 30.80 to be conservative.

Target 2 is the 61.8% Fib Extension of the yellow range (29.91) which is at the AB/CD (29.91) which is also near 61.8% Retracement of the green range (29.63). We're using 30.00 to be conservative.

Entry: 10/2/20 31.90.
Target 1: 30.80.
Target 2: 30.00.
Stop: 33.50 just above the bear flag high.

Risk: 31.90 - 33.50 = -1.6 * 600/pt = $-960
Target 1 Reward: 31.90 - 30.80 = 1.1 * $600/pt = $660
Target 2 Reward: 31.90 - 30.00 = 1.9 * $600/pt = $1,140

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