lean hog future – crude oil future- trade idea – cullen outlook
This is a sample of Brian’s email newsletter, The Cullen Outlook.
This is from the Pre-Dawn Targeting portion from July 13th.
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I wanted to showcase 2 markets that caught my attention over the past 2 days.
1 that is setting up now and today might be the day and…
1 we missed initially but might have more upside.
Let’s ring that mid-week bell !!!
August LEAN HOGS:
Check this out, you don’t see this type of formation very often!….
On Monday we opened near 78.80, traded lower (to the key 78.00 level) and closed near those lows.
Check out the chart below, this is important…
On Tuesday we not only opened higher on the day, but we gap opened higher ABOVE the entire previous trading day.
We tried to rally yesterday but gave up most gains by the end of the day but still managed to close positive and still above Monday’s trading day.
This 78.00 level was also support in mid-June when we formed a Bullish Hammer and rallied (see aqua highlight).
I like getting LONG the Hog market here and risking just under this established 78.00 level
This formation for those who like Candlesticks is called a Bullish KICKER and it breaks down like this:
- They are a key reversal formation. check!
- They signify an abrupt change in trader’s sentiment and attitude. Ok!
- Kickers are most often seen at the end of a significant move higher or lower in the market. check!
It is a 2 candle formation that has characteristics like this:
- The first candle is either a strong bullish or bearish candle. Yes!
- The second candle gap opens in the OPPOSITE direction. Yes!
- During the 2nd trading day candle at no time does the price action enter into the body of the 1st trading days candle. (If so, this negates the formation) It didn’t!
August Lean Hog chart…
August CRUDE OIL:
Notice the old support back in late April / early May. The 44.50 level held (44.51 was yesterday’s low)
BUT we are now back above the trendline that started back in January when we put in the recent 32.00 low.
I think we should be getting long Crude Oil here if we can get back to the trendline support near 46.00 and looking for resistance at 48.00
Risk could be just under this 44.50 level where you could consider making your stop loss order a 2 lot and see if we can catch a move down somewhere near 40.00
I like to use this 2 lot stop order strategy where I can when appropriate. Find out more about it by watching this short video: http://www.danielstrading.com/video/broker-tip-brian-cullen-2-lot-stop-order
August Crude Oil chart…
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