August soybean oil futures (ZLQ25) present a selling opportunity on more price weakness.

See on the daily bar chart for August soybean oil futures that prices are trending lower and have just hit a five-week low. See at the bottom of the chart that the moving average convergence divergence (MACD) indicator is also in a bearish posture as the red MACD line is below the blue trigger line and both lines are trending down. Also, a bearish head-and-shoulders top reversal pattern has formed on the daily bar chart for August bean oil. The bears have momentum to suggest more price downside in the near term.

Fundamentally, good soybean planting and growing weather in most of the U.S. midsection, with no crop-threatening long-term weather forecasts, have been a bearish weight on the soybean futures market. The U.S.-China trade war is also a bearish element for U.S. soybean oil. Furthermore, it’s likely that spreaders will be unwinding long soybean oil futures, short soybean meal futures spreads in the near term.

A move in August soybean oil futures prices below chart support at Friday’s low of 47.14 cents would become a selling opportunity. The downside price objective would be 42.00 cents, or below. Technical resistance, for which to place a protective buy stop just above, is located at 49.00 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 trades 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%): 

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.