Sell Spread ZLN2020-ZLZ2020 Soybean Oil Commodity Futures
We look as a first thing at the spread indicator which is a trend following indicator and suggests if the direction of the Soybean Oil spread is bearish or bullish .
When the red line is above the green line the indicator is suggesting that the spread is bearish .
Before to enter short, we look at the seasonality indicator as well to receive a confirmation.
The seasonality indicator is suggesting that the Soybean Oil market is 92 % bearish .
Because both indicators are bearish , in our opinion an opportunity is coming for short positions and you may consider to sell the spread ZLN2020-ZLZ2020
If you seasonality indicator would have suggested a bullish market for the Soybean Oil ,
that would have meant that the spread ZLN2020-ZLZ2020 would have been out of seasonality and therefore we would have avoided the trade.
We look to our RS indicator to identify support and resistance levels.
According to our strategy, the support and resistance can be used respectively to set our take profit and stop loss
When the red line is above the green line the indicator is suggesting that the spread is bearish .
Before to enter short, we look at the seasonality indicator as well to receive a confirmation.
The seasonality indicator is suggesting that the Soybean Oil market is 92 % bearish .
Because both indicators are bearish , in our opinion an opportunity is coming for short positions and you may consider to sell the spread ZLN2020-ZLZ2020
If you seasonality indicator would have suggested a bullish market for the Soybean Oil ,
that would have meant that the spread ZLN2020-ZLZ2020 would have been out of seasonality and therefore we would have avoided the trade.
We look to our RS indicator to identify support and resistance levels.
According to our strategy, the support and resistance can be used respectively to set our take profit and stop loss