Pro Farmer Senior Market Analyst Rich Posson says a weekly reversal higher in soymeal futures calls for a Level 1 business-cycle low to be posted in the near-term. "The Level 1 low occurs two to three times per year and it reflects the more important fluctuation of demand. The oversold weekly based stochastic made a buy signal last week," he adds.
In the March soymeal futures chart below, Posson uses technical indicators such as stochastic, moving averages, trendlines as well as his business-cycle analysis:
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