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.
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