Oat Futures--- Oat futures in the September contract are near a 2 month low in today's trade continuing its bearish momentum down another 6 cents at 2.75 a bushel as I am now recommending a bearish position while placing the stop loss above the July 3rd high of 2.89 as an exit strategy as the risk is around $700 per contract plus slippage & commission.
The grain market in general is starting to show some weakness as improving weather conditions are putting pressure on prices and if you take a look at the daily chart the downtrend line still remains intact so take a shot at the downside while making sure that you risk 2% of your account balance on any given trade as the proper money management technique.
The volatility at the current time is average as this commodity can experience large price swings especially during the summer months, but it looks to me that a possible head and shoulders top chart pattern has developed as prices peaked out on June 14th at 2.99 so look to play this to the downside.
CHART STRUCTURE: SOLID
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