Trading the Trend: short soybeans
Soybean futures prices are expected to continue their downward trajectory. We would thus like to go short front month soybean futures with a downside target at $1,200 and a stop-loss at $1,386.
(Video Transcript)
Long orange juice paid off
Hello, and welcome to Trading the Trend on Wednesday, 23 August 2023. Last week, we went long orange juice and that trade worked out extremely well, because we made our profits within a couple of days really.
As you can see here on the daily financial bet, we went long here and we had an upside target at $3.30 and that was hit within a couple of days. And since then the orange juice price has come off again. So, sometimes these trades work out extremely well and very rapidly. So, here we had a nice profit on that trade.
Soybean futures a short-term trend
Now, in this week's Trading the Trend, what I would like to do is actually look at a shorter-term trend, as you can see here. Soybean futures have come off the July high around $1,436.
And then we had from the low seen in early August and ABC Elliott Wave correction to the upside. So, it's a three-legged correction and therefore I expect further downside to be seen and do so since I believe that this correction to the upside has now ended.
So, this week's Trading the Trend is to go short soybeans and do so with a stop loss at $1,386 and with a downside target at $1,200.
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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