For the Week of March 18, 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:
June 2013 Euro Currency
The June 2013 Euro Currency contract has broken the resistance of an upper Trend Line. The trend line is made up of five touches at 1.3731 (2/01/13), 1.3530 (2/13/13), 1.3444 (2/20/13), 1.3143 (3/08/13), and 1.3074 (3/13/13). The Trend Seeker (a US Chart Company tool to help identify market trend) states the market’s trend is Down however, with a Weak ranking. The market closed above the upper trend line on Friday, but a new long position cannot be entered until the trend aligns. The MACD and Stochastic Indicators are both leaning bullish. Once these technical indicators and the Trend Seeker change, look for a long position to be established. The upside target will be the twelve month contract high of 1.3731 (2/01/13).
June 2013 Lean Hogs
The June 2013 Lean Hogs contract is setup for a Momentum Entry Technique breakout. A break below the 88.700 (3/06/13) low will trigger a short entry. The Trend Seeker (a US Chart Company tool to help identify market trend) is Down with an Extreme ranking. The MACD indicator is bearish but below the baseline. The Stochastic indicator displays a strong bearish market and is above the “over sold” territory. There may be support in this area as the market was stagnant here last March through June, however, with ADX at 41.85 Momentum could carry this market to the 85.000 price level. A initial stop loss can go above the resistance level and upper trend line with touches at starting at 92.100 (3/07/13) and ending with Friday’s high of 90.350. A downside target can be placed at 82.125 based on a Wave Projection Price.
This material is conveyed as a solicitation for entering into a derivatives transaction.
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