For the Week of June 08, 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.
Let’s focus on three contracts that have defined Trend Lines Formations.
Highlighting This Week’s Potential Breakouts:
E-mini S&P 500
The September 2015 E-mini S&P 500 contract formed a lower trend line with touches at 1960.25 (2/02/15), 2049.75 (5/07/15), 2075.75 (6/05/15). The Trend Seeker (a U.S. Charts Company tool to help identify market trend) is currently neutral, and with a weak ranking. The MACD, a trend indicator, is bearish above the baseline. The Stochastic indicator, a momentum indicator, shows a contract with strong downward momentum. A 20-day and 50-day Moving Average are relatively flat. A cross over is a bearish signal as well. A close below the lower trend line and Trend Seeker changing to down triggers a short entry opportunity. The target is the recent contract low of 1951.00 (12/16/14). A potential stop loss could be placed above the trend line, which may act as a resistance level.
After creating a support level near .7550, there is an entry opportunity in the Australian Dollar market using the Momentum Entry Technique (M.E.T.). A break of the .7776 recent high (6/03/15) in the September 2015 contract triggers a long entry. The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is down though and with an extreme ranking. MACD, a trend indicator, and Stochastics, a momentum are bearish but appear to be oversold. A stop loss may be placed below recent contract lows. An upside target is a previous short-term contract high at .8109 (5/14/15).
The December 2015 Silver contract formed a lower trend line as well with touches at 15.380 (3/11/15), 15.680 (4/24/15), and 15.980 (6/08/15). The Trend Seeker (a U.S. Charts Company tool to help identify market trend) is currently neutral, again, with a neutral ranking. The MACD, a trend indicator, is bearish above the baseline. The Stochastic indicator, a momentum indicator, is bearish, but potentially oversold at the moment. A close below the lower trend line and Trend Seeker changing to down triggers a short entry opportunity. Another short entry trade confirmation is a cross over of the 20-day and the 50-day Moving Averages. Both are angling downward at this time. A potential stop loss could be placed above the trend line, which may act as a resistance level. A potential downside target a contract low at 15.220 (11/07/15).
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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