For the Week of May 11, 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:
Australian Dollar
The June 2015 Australian Dollar contract formed 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 .7504 (4/18/15). The market rallied through the top of a Channel Formation to make a new short-term contract high at .8055 (4/29/15), before pulling back. That rally setup the number two point. A number three point formed at .7765 (5/05/15) as the pullback did not surpass the twelve-month contract low and has since been trading higher. The MACD, a trend indicator, and Stochastics, a Momentum indicator, are both slightly bearish now. For trade confirmation of a long position these indicators must be bullish. A 20-day Exponential Moving Average and a 50-day Moving Average are moving upward already. The Trend Seeker (a U.S. Chart Company tool to help identify market trend) is up. A potential stop loss would go below a recent pivot point low of .7848 (5/08/15). An upside target is the .8500 price level.
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.
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