Soybean Oil Futures Just Hit a 4-Month Low. Here's When to Sell.

The daily chart for March soybean oil futures (ZLH27) shows that prices are trending down and have just hit a four-month low. At the bottom of the chart, you can see that the Moving Average Convergence Divergence (MACD) indicator is in a bearish posture, as the blue MACD line is below the red trigger line and both lines are trending down.

Fundamentally, a record U.S. soybean crop is presently being harvested. Meanwhile, the depreciating Brazilian real (BRLUSD) against the U.S. dollar is making Brazilian beans even more price-competitive versus U.S. beans in the global trade market.

A move in March bean oil futures below chart support at 65.00 cents would become a selling opportunity. The downside price objective would be 57.00 cents or below. Technical resistance, at which to place a protective buy stop just above, is located at 68.50 cents.

IMPORTANT NOTE: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any traders and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%): 

1. Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND RISKY BUSINESS. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.