• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Daniels Trading

Independent. Objective. Reliable.

Top Navigation

  • Open a Futures Account
  • Sign Up
  • Log in
  • 1.800.800.3840

Primary Navigation Menu

  • About
    • Who We Are
    • Services
    • Careers
    • Risk Disclosure
  • Trade
    • Broker-Assisted
    • Self-Directed / Online
    • Request Pricing
  • Hedge
    • DanielsAg Mobile App
    • Ag Marketing Plan
    • WASDE Analysis
    • Grain Resources
    • Livestock / Dairy Resources
    • Hedging Videos
    • Request Pricing
  • Invest
    • Automated Strategies
    • Managed Futures
    • Request Pricing
  • Advisories
    • GENERAL / FUNDAMENTAL
      • DT Newsletter
      • Insider Market Advisory
      • Capture the Move
      • Turner’s Take Newsletter & Podcast
    • TECHNICAL ANALYSIS
      • AccuMarkets
      • The Cullen Outlook
      • Data Feed Trade
      • Rath Overlay
      • Seasonal Spread Trader
      • Trade Spotlight
    • AG MARKETING
      • Cattleman’s Advisory
      • The Swine Times
      • Technical Ag Knowledge
      • This Week in Grain
      • Turner’s Take Ag Marketing
    • THIRD-PARTY RESOURCES
      • CFRN
      • Market Action Scanner
      • Moore Research Center, Inc. (MRCI)
      • OptionWorks®
      • PatternCast
      • TASMarketProfile.com
  • Education
    • CME Group Resource Center
    • Guides
    • Frequently Asked Questions
    • Order Entry Handbook
    • Webinars
  • Blog
    • Futures 101
    • Ag Marketing
    • Tips & Strategies
    • Trading Advisories
  • Resources
    • Trading Software
    • Quotes and Charts
    • Futures Calendars
    • Contract Specifications
    • Margin Requirements
    • Futures Calculator
  • Accounts
    • GAIN Capital Futures
    • R.J. O’Brien
  • Contact
Home / Futures Blog / Beyond the Spotlight: Silver, British Pound and Chicago Wheat – February 4, 2013

Beyond the Spotlight: Silver, British Pound and Chicago Wheat – February 4, 2013

February 4, 2013 by Don DeBartolo

For the Week of February 04, 2013

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:

March 2013 Silver

The March 2013 Silver contract has formed a Pennant Formation. A Pennant Formation consists of two converging trend lines in a market with consolidating prices. There are touches on the lower trend line at 29.860 (1/07/13), 30.150 (1/11/13), 30.745 (1/28/13), and 30.850 (1/29/13). There are touches on the upper trend line at 34.490 (11/29/12), 32.485 (1/23/13), 32.300 (1/30/13), and 32.160 (2/01/13). The Trend Seeker (a US Chart Company tool to help identify market trend) for March 2013 Silver is Neutral. The ranking is also Neutral meaning Trend Seeker is anticipating neither a bullish nor bearish move. In addition, the chart is approaching the apex of the Pennant Formation. By default the market will breakout above or below one of the trend lines at some point in the near term. A trade signal will not be confirmed until the Trend Seeker flips to an Up or Down trend with a subsequent chart breakout in that direction. Both a 20-day Exponential Moving Average and 50-day Moving Average are keeping with the neutral theme as both prices are converging. It appears both the MACD and Stochastic indicators are signaling a bullish move however.

March 2013 British Pound

Thanks in part to the Bank of England potentially taking aggressive steps to avoid a risk of recession, the March 2013 British Pound contract has a chart formation setup. A break of the 1.5670 (1/28/13) low will trigger a short entry using the Momentum Entry Technique. The Trend Seeker (a US Chart Company tool to help identify market trend) is in a Down trend with a Strong ranking. The MACD and Stochastic indicators both exhibit signs of a bearish market with the potential to continue its price slide. The ADX is quite strong with a 28.91 reading. Expect to trail stop losses quickly if Momentum continues to push prices lower. An initial stop loss can be placed above the Friday high with a potential risk of 205 points or the 1/25/13 high of 1.5823 with a potential risk of 154 points . The potential downside target is the twelve month contract low of 1.5360 (5/31/12).

March 2013 Chicago Wheat

The March 2013 Chicago Wheat market is setup for a Momentum Entry Technique breakout. A break below the 763’0 (1/24/13) will trigger a short entry. The Trend Seeker (a US Chart Company tool to help identify market trend) is in a Down trend with an Extreme ranking. This move to the downside may coincide with the seasonal “February Break” trading pattern. The MACD indicator is still bullish but this is a lagging indicator. The Stochastic indicator already displays a strong bearish market. Support may come in at the 736’2 (1/11/13) low, but with ADX at 20.10 Momentum could carry this market to the 700’0 price level. A initial stop loss can go above the 1/31/13 trading high of 791’0.

Risk Disclosure

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.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

Filed Under: Trade Spotlight

About Don DeBartolo

Don C. DeBartolo is a Series 3 licensed broker registered with the National Futures Association (NFA). As a former arbitrage clerk in the S&P 500 futures pit at the Chicago Mercantile Exchange (CME), Don has floor trading experience. Taking his trade execution expertise and ability to navigate a fast-paced environment, Don transitioned to the brokerage side of the business. Since 2005, he has worked at Daniels Trading, a brokerage firm in the heart of the financial district in Chicago. His responsibilities as a broker include providing market analysis, trade execution, and money management to his clients around the world. In March 2010, he developed a formal trade advisory for clients of the firm seeking specific trade recommendations and subsequent risk management.

Due to his widespread proficiency and experience with the futures and commodity options markets, he is able to offer his clients timely insight, specialized trade recommendations, and educational information through various videos and writings.

Studying at Loyola University Chicago, Don discovered the international sport of rugby. Still today, he plays for the Chicago Griffins, a member of the highest league of rugby competition in the United States. Skill and discipline are two traits that carry over from the pitch to the trading screens.

Primary Sidebar

Get Blog Updates

Subscribe to our blog and receive a daily email with information on market insights, trading tips & strategies.

Trustpilot

Footer

Site Navigation

  • Frequently Asked Questions
  • About Us
  • Customer Reviews
  • Contact Us
  • Futures Blog
  • Open a Futures Trading Account
  • Media Resources
  • Fund Your Account
  • Legal Notices

Contact Us

Daniels Trading
100 South Wacker Drive, Suite 1225
Chicago, IL 60606
+1.312.706.7600 Local / Int'l
+1.800.800.3840 Toll-Free
+1.312.706.7605 Fax

Connect with Us

Trustpilot

Copyright © 2019 · Daniels Trading. All rights reserved.

Risk Disclosure

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.

Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.

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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.

  • Risk Disclosure
  • Privacy Policy
  • Terms of Use
  • Back to top