July Bean Oil futureas had a similar pattern to cottonIt had a breakout bar yesterday (circled) and support at 3850 from last week. The first breakout point was yesterday’s low of 3870; I took the conservative route and sold at 3845 when the blue support line was taken out. It took a bit to develop, but by late in the session it broke to a new low of 3787. It rallied from there, went back and tested the low, which held, so I covered at 3790.
Both bean oil and cotton could see downside followthrough; as both had bearish MACD crossovers today. I chose to cover because I’ve found that breakout trades often reverse themselves the following day, and I didn’t want to give back profits.
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