For the Week of June 23, 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 December 2014 Soybean Meal contract is trading along a lower trend line. There are touches at 338.5 (1/30/14), 343.4 (2/11/14), and 386.9 (6/18/14). A close below the lower trend line will trigger an entry to the downside based on the Trend Line Breakout Formation. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is up. The Trend Seeker flipped to up from neutral after a strong trading session on Friday. The MACD, a trend indicator, is bearish above the baseline though. A 20-day Exponential Moving Average is closing in on crossing over a 50-day Moving Average. That is a bearish signal. The Stochastic indicator, a Momentum indicator, is strong to the downside. Both the Trend Seeker and Momentum should be bearish before entering a short position. If both line up, a break of the 386.9 (6/18/14) low would trigger an entry to the downside. Place an initial stop loss above the 402.9 (6/10/14) picot point high.
The September 2014 Rough Rice contract has setup a Hi-Lo Breakout Formation. A close below the twelve-month contract low of 1374.0 (6/10/14) triggers an entry opportunity order to the downside. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is down. However, the MACD, a trend indicator, is bearish, appears to have bottomed out. The Stochastic indicator, a Momentum indicator, is in the “over sold” territory. I’d like to see the twelve-month contract hold and watch for an opportunity to the upside. A 1-2-3 Bottom Formation would be in place. The number one point is the twelve-month contract low. The number two point is the high of 1428.0 (6/16/14). The number three point, to date, is the low of 1375.0 (6/20/14). The Trend Seeker and technical indicators must be bullish for trade confirmation to the upside but there is plenty of room on the chart to allow this to occur.
The September 2014 Coffee contract is trading along an upper trend line. There are three touches at 220.60 (4/23/14), 209.45 (5/07/14), 178.85 (6/20/14), and numerous near touches. A close above the upper trend line will trigger a long entry opportunity. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is currently Down. However, the MACD, a trend indicator, is bullish below the baseline. A 20-day Exponential Moving Average has hooked up. The Stochastic indicator, a Momentum indicator, is strong to the upside as well. Stop loss orders will be determined upon potential entry.
Try Trade Spotlight: Futures – for 30 Days
Trade Spotlight: Futures – Trial - Trade Spotlight Futures is an email advisory that provides futures contract trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
Trade Spotlight: Futures – includes an email newsletter subscription.
Trade Spotlight: Futures – trial lasts 30 days.
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.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.