For the Week of December 02, 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 March 2014 Coffee contract formed a 1-2-3 Bottom Formation. The number one point is the twelve month contract low of 104.15 (11/06/13). The number two point is the November contract high of 112.00 (11/22/13). The contract retraced to 106.15 (11/25/13). This low sets up the number three point of the formation. However, a number three point established in the trading session following the number two point being established does not typically setup as a strong formation. A break through the number two point triggers an entry to the upside. The MACD, a trend indicator, is bullish below the baseline. Stochastics, a Momentum indicator, crossed over bullish as well. A 20-day Exponential Moving Average is currently flat, but below the current contract price. The Trend Seeker (a US Chart Company tool to help identify market trend) is currently Down, but a 1-2-3 Bottom Formation is a trend reversal formation. An upside target is the high of 121.05 (10/10/13).
The February 2014 Lean Hogs contract formed a Flat Bottom Triangle Pattern. There are touches on a downward sloping trend line at 94.900 (10/30/13) and 91.400 (11/27/13). There are touches on a support line below at 89.400 (10/18/13), 89.450 (10/21/13), 89.525 (11/14/13), 89.400 (11/19/13), and 89.525 (11/25/13). A close above the upper trend line and trend Seeker changing to Up will trigger a long entry. The Trend Seeker (a US Chart Company tool to help identify market trend) is currently Neutral with a Bullish ranking. The MACD, a trend indicator, is bearish below the baseline. Stochastics, a Momentum indicator, is narrowing and potentially setup to cross over. A 20-day Exponential Moving Average and 50-day Moving Average are currently flat. A potential stop loss can be placed below the support line. An upside target is twelve month contract high of 94.900 (10/30/13).
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.
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