I just exited half of my position on Soybean because we are hitting the resistance. This being said, I am still bullish and I want to explain my plans according to the different scenarios that I see.
Scenario 1: Price could go straight up to the next resistance, in which case I will have left some money on the table.
Scenario 2: We bounce to the downside from the current resistance and I get to buy again with a better price while using a wide stop below the previous neckline of the reversed head and shoulder. For this scenario I can either buy the falling knife or buy a breakout from a continuation pattern that might form. We'll see.
Scenario 3: Price pierces through resistance conservatively and tests the zone, at which point I can a) buy back on support and/or b) buy the breakout of a continuation pattern like a flag or a pennant.
Scenario 1: Price could go straight up to the next resistance, in which case I will have left some money on the table.
Scenario 2: We bounce to the downside from the current resistance and I get to buy again with a better price while using a wide stop below the previous neckline of the reversed head and shoulder. For this scenario I can either buy the falling knife or buy a breakout from a continuation pattern that might form. We'll see.
Scenario 3: Price pierces through resistance conservatively and tests the zone, at which point I can a) buy back on support and/or b) buy the breakout of a continuation pattern like a flag or a pennant.