For the Week of April 13, 2015
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:
30 Year T-Bonds
The June 2015 30 Year Treasury Bonds contract appears to be rolling over to the downside after finding resistance near the 167-00 price level. The Trend Seeker (a U.S. Charts Company tool to help identify market trend) is currently up though. However, the MACD, a trend indicator, is bearish. It’s suspected the Trend Seeker will reverse if a recent level of support is broken. A break of the 162-08 (3/26/15) low will trigger a short entry based on the Momentum Entry Technique. The Stochastic indicator shows a contract with downward momentum. The downside target is this year’s contract low of 154-27 (3/06/15). A stop loss will go above recent contract highs.
The June 2015 Crude Oil contract is trading within a Channel Formation. The top of the channel is the 57.47 (1/02/15) high. The bottom of the channel is the twelve month contract low at 45.93 (3/18/15). Additionally, the contract has made higher lows creating an upper sloping trend line with touches at 45.93, 46.67, 47.19, and 48.79 creating another support level. The Trend Seeker (a U.S. Charts Company tool to help identify market trend) is currently up. The MACD, a trend indicator, is bullish as well just below the baseline. The Stochastic indicator shows a contract with upward momentum. A conservative approach is to go long only of the contract closes above the top of the channel. An aggressive approach is to use the Momentum Entry Technique and go long on a break of the pivot point high of 55.37 (4/07/15). Looking at the 60.00 price level for a potential profit regardless of the entry price. A stop loss will go below recent contract lows.
The July 2015 Corn contract is also trading within a Channel Formation. The top of the channel is the 407’2 (2/09/15) high and the bottom of the channel is this year’s contract low at 375’0 (3/18/15). The Trend Seeker (a U.S. Charts Company tool to help identify market trend) is currently down. The MACD, a trend indicator, is bearish as well just below the baseline. The Stochastic indicator shows a contract with downward momentum. A break of the 375’0 low triggers a short entry using the Momentum Entry Technique. The downside target is the twelve month contract low of 347’0 (10/01/14).
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.
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