I am Stephen Davis, senior market strategist at Walsh Trading, Inc., in Chicago, Illinois. You can reach me at 312- 878-2391 and sdavis@walshtrading.com.
Below is a daily chart pattern of March 2026 soybean meal. On Friday, December 19, the low was 300.70. Notice the circled area on the chart where the gap is at 300.70 on October 27, the same as Friday’s low. In my opinion, this is what markets do – go down and fill the gap and then rally back. Soymeal meal markets like even numbers. If this area can hold, it can rally back to 315.00, in my opinion.
Trade strategy is to buy March 2026 soybean meal at 301.00 or better. For a profit objective, sell March 2026 soybean meal at 311.00. Risk $500 to make $1,000 on each contract.
Limit potential loss with an order to sell March 2026 soybean meal at 296.00 on a stop, good till canceled (GTC). In my opinion, It’s a good idea to define the risk on every trade and trade with stop loss orders.
The market is nearing oversold levels with a Relative Strength Indicator (RSI) reading under 30.
Look for this area to hold and rally above that 200-day moving average. That’s the horizontal red line on the chart. Above this line, the market looks good to rally back, in my opinion.
Call me anytime at 312- 878-2391 to discuss trade strategies.
Chart courtesy of CQG