For the Week of October 27, 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 British Pound futures contract is trading toward an upper trend line with near touches at 1.7165 (7/15/14), 1.7066 (7/23/14), 1.6515 (9/19/14), and 1.6178 (10/21/14). The MACD, a trend indicator, is bullish below the baseline. Stochastics, a Momentum indicator, is bullish as well. A 20-day Exponential Moving Average is flat, while a 50-day Moving Average is moving downward. A cross over of these averages is a bullish signal. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is Down with a Weak ranking. For trade confirmation, the contract price should close above the trend line and Trend Seeker change to Up. A potential stop loss is the pivot point low of 1.5988 (10/23/14). A potential target is the high of 1.6515 (9/19/14).
The December 2014 Japanese Yen contract is setup in a 1-2-3 Bottom Formation This formation is a bullish pattern. A break of the number two point triggers a long entry. The number one point is the twelve-month contract low of .9088 (10/01/14). The market rallied to make a new short-term contract high at .9510 (10/15/14), before pulling back. That rally setup the number two point. A number three point formed at .9233 (10/23/14) as the pullback did not surpass the twelve-month contract low and has since rallied. The MACD, a trend indicator, is slightly bullish below a baseline. Stochastics, a Momentum indicator, is bearish on the other hand. A 20-day Exponential Moving Average and a 50-day Moving Average are moving downward. A cross over of these averages though is a bullish signal. Though, the 20-day Exponential Moving Average should begin to climb. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is Up with a Neutral ranking. For trade confirmation, the contract price should break through the number two point and Trend Seeker should remain Up.
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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