For the Week of January 21, 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 Japanese contract formed a 1-2-3 Bottom Formation. The number one point is the twelve month contract low of .9486 (1/02/14). The number two point is the January contract high of .9726 (1/13/13). The contract pulled back to .9533 (1/16/13), this low sets up the number three point of the formation. A break through the number two point triggers an entry to the upside. The MACD, a trend indicator, is bullish below the baseline. The Trend Seeker (a US Chart Company tool to help identify market trend) is currently Down though, but a 1-2-3 Bottom Formation is a trend reversal formation. Stochastics, a Momentum indicator, is relatively flat. A 20-day Exponential Moving Average and 50-day Moving Average are both angling downward. For trade confirmation, the technical indicators must exhibit Momentum to the upside. An upside target is the 1.0000 price level. A potential stop loss can be placed below the recent contract highs near .9629 (1/06/14), which would fall below the 20-day Exponential Moving Average as well.
The March 2014 Ten-Year Note contract is setup for a trade opportunity to the upside. A break of the 124’20.5 high (1/13/14) will trigger a long entry based on the Momentum Entry Technique. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is Neutral. The MACD, a trend indicator, is bullish though. The Stochastic, a Momentum indicator, is bullish as well, just above the “over bought” level. RSI, another Momentum indicator, is above the 50.00 level. A 20-day Exponential Moving Average (123’30.8) is setup to cross over a 50-day Moving Average (124’12.1), this is a bullish confirmation. A potential stop loss can be placed below the pivot point of 123’24.0 (1/15/14). A potential upside target is the high of 126’25.0 (10/30/13).
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