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.
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.