For the Week of April 06, 2015
The Trade Spotlight advisory service applies the GBE trading methodology (buying or selling commodity contracts based on breakouts of chart formations and technical indicators) to identify one to two trade setups per week.
Highlighting This Week’s Potential Breakouts:
The June 2015 Euro Currency contract is setup in a 1-2-3 Bottom Formation This formation is a bullish pattern. A break of the high price triggers a long entry. The number one point is the twelve-month contract low of 1.0473 (3/13/15). The market rallied to make a new short-term contract high at 1.1064 (3/26/15), before pulling back. That rally setup the number two point and high of the formation. A number three point formed at 1.0724 (3/31/15) as the pullback did not surpass the twelve-month contract low and has since rallied. The MACD, a trend indicator, is bullish below the baseline. Stochastics, a Momentum indicator, is also bullish below the “over bought” level. A 20-day Exponential Moving Average and a 50-day Moving Average have hooked upward. A cross over of these two averages is a bullish signal. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently Down. Though this formation is a trend reversal type formation. For trade confirmation, the contract price should break through the number two point and Trend Seeker should switch to Up. An upside target is the 1.1400 price level.
U.S. Dollar Index
Unsurprisingly, the reverse chart formation is occurring in the U.S. Dollar Index contract. The June 2015 U.S. Dollar Index contract is setup in a 1-2-3 Top Formation This formation is a bearish pattern. A break of the low price triggers a short entry. The number one point is the twelve-month contract high of 100.785 (3/13/15). The market sold-off to make a low at 96.315 (3/26/15), before pulling back. This is the number two point. Discrediting the low on 3/18/15 at 94.765 that was made during a volatile session when the FOMC meeting results were made public. A number three point formed at 99.005 (3/31/15) as the pullback did not surpass the twelve-month contract high and has since sold-off again. The MACD, a trend indicator, is bearish above the baseline. Stochastics, a Momentum indicator, is also bearish below the “over bought” level. A 20-day Exponential Moving Average and a 50-day Moving Average have hooked downward. A cross over of these two averages is a bearish signal. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently Neutral. Though this formation is a trend reversal type formation. For trade confirmation, the contract price should break through the number two point and Trend Seeker should switch to Down. A downside target is the 94.000 price level.
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