March soybean meal futures (ZMH26) are showing signs of a buying opportunity as prices demonstrate strength. Prices have recovered from lows recorded in early January, with bullish momentum gaining traction.
On the daily chart, the moving average convergence divergence (MACD) indicator displays a bullish configuration. The blue MACD line remains above the red trigger line, and both lines are trending upward. Seasonal analysis also suggests a generally favorable outlook for soybean complex futures over the coming month.
Fundamentally, China has maintained its purchases of U.S. soybeans. Market observations indicate the country is following through on its commitment to increase these purchases in the months ahead.
A decisive move above the chart resistance level at $305.00 would strengthen the bullish case and signal a buying opportunity. The potential upside price target is seen at $326.00 or higher. Technical support, which could serve as a level for protective sell stops, is identified at the January low of $295.20.
The author notes he is not a futures broker and does not manage trading accounts aside from his personal one. The discussion of trades is hypothetical, intended to highlight potential opportunities, with all trading decisions and position sizing left to the individual trader.
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