For the Week of December 01, 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:
Canadian Dollar
There is a long entry opportunity in the December 2014 Canadian Dollar contract (LTD is December 16, 2014) on a breakout of a Trend Line Formation. The Trend Line is made up of highs at .9218 (9/04/14), .9167 (9/19/14), and .8931 (11/21/14). If the contract closes above the Trend Line (approximately .8900) this in part triggers a long entry signal. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) must be in an uptrend as well for trade confirmation, it’s currently down. The MACD, a trend indicator, is up. Stochastics, a momentum indicator, is quite volatile currently. This is due to a large sell-off during Friday’s trading session; followed by a strong rally today. A 20-Day Exponential Moving Average and 50-Day Simple Moving Average are narrowing. A cross over of these two averages is another bullish signal and additional confirmation. A couple upside targets are the highs of .9131 (9/18/14) and .9226 (8/29/14). Splitting the difference and placing a target at 92 even is reasonable.
Corn
The March 2015 Corn contract is trading along a lower Trend Line which is acting as strong support for this market. There are touches at 330’4 (10/01/14), 332’0 (10/02/14), 333’6 (10/03/14), 375’6 (11/19/14), 375’2 (11/20/14), 378’2 (11/24/14), 379’0 (11/25/14), and 383’0 (12/01/14). Any stop loss orders to protect long positions can go below this trend line. A break of the 401’2 high (11/13/14) triggers a long entry. The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is already up and with a strong ranking. The MACD indicator is bullish, but relatively flat. Momentum, is stronger as the Stochastic indicator is bullish. A 20-day Exponential Moving Average is flat as well, as the contract has been trading within a narrow range recently. A 50-day Simple Moving Average is pointed up. An upside target is a series of lows around the 450 price level.
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.
Risk Disclosure
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.
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.
