For the Week of January 6, 2014
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 2014 March Corn contract is in a Flat Bottom Triangle Formation; potentially setup to breakout to the upside. There are touches on the lower trend line at 420’0 (1/19/13), 418’4 (12/02/13), 420’4 (12/16/13), and 418’4 (1/02/14). There are touches on the upper trend line at 460’0 (10/18/13), 458’6 (10/23/14), 440’6 (10/10/13), 436’0 (12/23/13), and 435’6 (12/24/13). A 50-day Moving Average is running alongside the upper trend line. The 20-day Exponential Moving Average is also above the current market price. A close above the upper trend line and Moving Averages is a long entry trigger opportunity. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently down, but the ranking is weak. For trade confirmation, the Trend Seeker will have to change to an uptrend. The MACD, a trend indicator, is currently bearish below the baseline. Stochastics, a Momentum indicator, appears to be strong to the upside. Friday, January 10th, are the USDA Supply/Demand, Crop Production, and Grain Stocks reports. This may be a volatile trading session, something to be aware of if already in a position. A potential stop loss can be placed below the twelve month contract low of 417’0 (1/03/14). An upside target is the 459’0 price level where there may be resistance.
The March 2014 Sugar contract is potentially forming a 1-2-3 Bottom Formation. The number one point is the twelve month contract low of 15.86 (12/01/13). The number two point is the December contract high of 16.58 (12/31/13). The contract retraced so far to a recent low of 15.97. This low will set up the number three point of the formation if it does not trade any lower nor below the twelve-month contract low. If the low holds up, a break of the number two point triggers a long entry opportunity to the upside. The MACD, a trend indicator, is bullish below the baseline. Stochastics, a Momentum indicator, is bullish but currently heading lower. A 20-day Exponential Moving Average and 50-day Exponential Moving Average are angling downward. The contract will most likely break the 20-day Moving Average on a breakout of the number two point. 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. A potential stop loss can be placed below the twelve-month contract low.
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.