For the Week of May 20, 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 Ten Year Note
The June 2013 Ten Year Note contract on Friday essentially erased it’s gains made in Thursday’s trading session. Thursday’s gain in the market was 19 points, opening price to closing price. Friday’s loss in the market was 18 points, opening price to closing price. The rollover sets up a potential short entry opportunity on a break of the 5/15/13 low using the Momentum Entry Technique. The Trend Seeker (a US Chart Company tool to help identify market trend) is Down. The MACD indicator agrees as its bearish, above the baseline. Momentum is strong and bearish, the ADX reads above 20.00 and Stochastics are above the “over sold” line. Rate of Change is greater than zero while the market price is dropping, this indicates a potential drop in price. Upon entering a short position, potential stop losses can be placed above recent highs, 132’17 (5/17/13). Potential downside targets can be the twelve month contract low of 129’19 (2/04/13) or the Wave Projection price of 130’08.
July 2013 Heating Oil
The July 2013 Heating Oil contract is trading along an upper trend line. There are touches on the trend line to the upside at 3.2205 (2/19/13), 3.0788 (4/02/13), and 2.9424 (5/17/13). A 50% Fibonacci Retracement between the 2013 calendar year high and low is 2.9715. This coincides with some recent highs. A close above the upper trend line and a breakout through these highs will trigger an entry to the upside. The Trend Seeker (a US Chart Company tool to help identify market trend) is Neutral. Though MACD is already bullish, below the baseline. Stochastics are bullish but above the “over bought” line. Along with steady Momentum, a conservative approach is to enter the market long only when the recent highs are triggered. Potential upside targets are the highs of 3.0788 (4/03/13) or 3.2205 (2/19/13).
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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