For the Week of November 12, 2012
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:
December 2012 Corn
The December 2012 Corn contract is trading sideways within a Channel Formation between 775’6 (10/11/12) and 732’2 (10/15/12). The 20 day exponential (746’5) and 50 day simple (755’6) moving averages are above the current price level but converging. The MACD indicator displays there is little momentum in the market at this time. The Trend Seeker (a US Chart Company tool to help identify market sentiment) is Down with an Extreme ranking. If the market can close below the lower support line of the Channel Formation it would trigger an entry to the downside. There may be some support at 708’6 but look for the market to fill in a gap from the July 4th holiday. Potential stop loss order could be placed over rent highs and the moving averages.
January 2013 Orange Juice
The January 2013 Orange Juice contract is trading along a downward sloping trend line. There are touches at 130.10 (9/14/12), 110.80 (11/07/12), and 110.40 (11/08/12). There are near touches at 117.00 (10/18/12), 114.45 (10/25/12), and (111.95 (11/01/12). The downward sloping trend line should maintain pressure on the downside. A close below the twelve month low of 104.45 (10/31/12) would trigger an entry to the downside based on a Hi-Lo Breakout. The Trend Seeker is Down and the ranking is Extreme. Potential stop loss orders can go on the other side of the trend line.
STOP ORDERS DO NOT NECESSARILY LIMIT YOUR LOSS TO THE STOP PRICE BECAUSE STOP ORDERS, IF THE PRICE IS HIT, BECOME MARKET ORDERS AND, DEPENDING ON MARKET CONDITIONS, THE ACTUAL FILL PRICE CAN BE DIFFERENT FROM THE STOP PRICE. IF A MARKET REACHED ITS DAILY PRICE FLUCTUATION LIMIT, A "LIMIT MOVE", IT MAY BE IMPOSSIBLE TO EXECUTE A STOP LOSS ORDER.
THIS MATERIAL IS CONVEYED AS A SOLICITATION FOR ENTERING INTO A DERIVATIVES TRANSACTION.
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