Trade of the week: short soybeans
Even though soybean prices have been rising quickly over the past few days they are approaching a key resistance area where they might falter before resuming their longer-term down trend.
We would thus like to go short soybeans with a stop loss above the key resistance zone at 1,328 and a downside target at 1,150.
(AI Video Summary)
Previous Dow Jones and DAX 40 trading outcomes
Today's "Trade of the week" focuses on continuing bullish trends in both the Dow Jones and the DAX 40, with recommendations to adjust stop losses for a risk-free position while anticipating further gains.
This week's trading opportunity
This week's trading opportunity spotlights soybean futures, contrasting with equities by proposing a short strategy. The recommendation leverages the longer-term downward trend against recent resistance levels, setting a stop loss at 1,328 with a downside target of 1,150, illustrating a tactical pivot to capitalise on uncorrelated market movements.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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