I Am Bearish The Oat Market

Oat Futures---Oat futures in the December contract settled last Friday in Chicago at 2.84 a bushel while currently trading at 2.86 up about 2 cents for the trading week as I'm now recommending a bearish position from this level while placing the stop loss above the contract high which was on October 15th at 3.07 as the risk is around $1,100 per contract plus slippage & commission.

The oat market has been the strongest grain over the last several months rallying over $0.60 in a matter of a month, but now this market on the daily chart looks toppy as the rest of the grain market also looks weak as the commodity markets in general continue to move lower despite all this talk about higher inflation.

Oat prices are trading below their 20 day moving average for the 1st time in a month, but still above their 100 day as the chart structure is excellent and I think the risk/reward are in your favor to take a short position, however make sure that you only risk 2% of your account balance on any given trade as a proper risk management technique as the oat volatility can experience large price swings.

TREND: ---LOWER---MIXED

CHART STRUCTURE: EXCELLENT

VOLATILITY: AVERAGE

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