For the Week of August 12, 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:
The September 2013 Canadian Dollar contract is set up for a breakout to the upside. The contract is trading along a downward sloping trend line with touches at .9955 (5/09/13), .9749 (7/31/13), and .9721 (8/09/13). A close above the upper trend line will trigger an entry to the upside. The Trend Seeker (A US Chart Company tool to help identify market trend) is Neutral, after a recent sell-off. Along with a close above the trend line, the Trend Seeker must change to Up, for trade confirmation. The MACD, a trend indicator, is already bullish above the baseline. A 20-day Exponential Moving Average is also pointed bullish. Stochastics, a Momentum indicator, is bullish as well. RSI, another Momentum indicator, reads 56.72, below the overbought level of 70. A potential stop loss can be placed below the 50-day Moving Average (.9636) and Friday’s low. Another potential stop loss can be placed below the pivot point of .9564 (8/07/13) A potential target is the first touch on the trend line at .9955 (5/09/13).
The October 2013 Sugar contract is set up for a breakout to the upside. There are several formations in play, a 1-2-3 Formation, a Trend Line Formation, and a Momentum Entry Technique (M.E.T). The contract closed above the trend line today. The breakout point of the 1-2-3 Formation is the high of 17.08 (7/31/13), this is also the M.E.T. breakout. The two other points of the 1-2-3 Formation are the lows of 15.93 (7/16/13, the number one point) and 16.51 (8/05/13, the number three point). The Trend Seeker (A US Chart Company tool to help identify market trend) is Up with a Strong ranking. The MACD, a trend indicator, is bullish below the baseline. A 20-day Exponential Moving Average and 50 day Moving Average are also pointed bullish, below the current contract price. Stochastics, a Momentum indicator, is bullish as well. RSI, another Momentum indicator, reads 60.33, below the overbought level of 70. A potential stop loss can also be placed below the pivot point of 16.51 (8/05/13).
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.
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.
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