Multiple Factors Converge in the Meats

Upon entering any trade, the ideal situation is to get as many factors working in your favor as possible. July pork bellies (PBN3:CME) have multiple factors aligning to suggest they will continue dropping after a rebound off the April lows.

First, we have a big-picture head-and-shoulders pattern, a bearish omen. Next, bellies have an unfilled gap from April 9 that served as resistance on Thursday and Friday of last week. Bellies also closed below the 50% retracement of their most recent downswing and held below the 50-day exponential moving average on both days, additional resistance factors that occur at the bottom fringe of the gap. ...