For the Week of October 17, 2016
This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
Highlighting This Week’s Potential Breakouts:
The December 2016 Soybean Meal futures contract is range bound within a Flat Bottom Triangle Formation. There are touches on the upper trend line at 349.3 (7/29/16), 338.5 (8/16/16), 309.0 (10/07/16), 306.5 (10/12/16), and 306.0 (10/14/16). The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is currently Down with a Neutral ranking. The MACD indicator, a trend indicator, is relatively flat but showing signs of turning bullish. A close above the upper trend line and a change in Trend Seeker triggers an entry to the upside. The Stochastics indicator, a Momentum indicator, is bullish. The trading volume has retreated the last four trading days, but an influx of long contracts would make for stronger Momentum. The 20-day and 50-day Moving Averages are converging. A cross-over of these averages is a bullish signal as well. Initial stop loss would be placed below the 300.0 price level and twelve-month contract low of 294.1 (9/27/16). Upside target is near the 350.0 price level.
Kansas City Wheat
There is a potential Channel Formation breakout setup in the December 2016 Kansas City Wheat futures contract. The contract is range bound between the twelve-month contract low of 397’4 (8/31/16) and 425’6 (9/23/16). The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is currently Down with a Weak ranking. The MACD, a trend indicator, disagrees with Trend Seeker as it’s bullish. The Stochastic indicator, a momentum indicator, is bullish as well. The 20-day and 50-day Moving Averages are converging rather quickly. A cross over of these averages is a bullish signal. A close above the Channel and the Trend Seeker being Up triggers an entry to the upside. There is potential resistance at the 440’0 price level, the last congestion area. If the market breaks through with Momentum the upside target is the 500’0 price level.
Try Trade Spotlight: Futures for 30 Days
Trade Spotlight: Futures Trial - An email advisory that provides futures contract trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
Trade Spotlight: Futures includes an email newsletter subscription.
Trade Spotlight: Futures trial lasts 30 days.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.