This is a sample of Brian’s email newsletter, The Cullen Outlook. This is the Pre-Dawn Targeting portion for Wednesday, October 21st.
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We talk from time to time about certain trades or spots on a chart where if support or resistance does NOT hold, there may be an opportunity to participate in the move that comes after that fail. I have 2 charts in particular that have been on my radar the past week. First, lets take a look at the video that I made on this topic a while back.
Making Your Stop Orders a 2 Lot:
CHARTS OF THE DAY:
December KANSAS CITY WHEAT: (KEZ5)
I will be looking to see if this market tries to bounce and form a double bottom. The market has broken lower after the bear flag took it from 4.70 up to 5.20 I like the idea of playing this support by going long at 4.70
The objective would be back near the 5.00 level. For risk, I think a 10 cent stop is plenty. You might even consider making your stop loss a 2 lot. In which case, the stop on your short position would be the initial entry price (in this example, 4.70)
December CRUDE OIL: (GCLZ5 standard QMZ5 mini)
I have the 45.00 level on the chart pegged as a possible spot to BUY looking for this recent support to hold once again. Using the mini contract (1/2 the size of the standard), you could risk $1.00 from entry ($500.00) You might even consider making your stop loss a 2 lot. In which case, the stop on your short position would be the initial entry price (in this example, 45.00)
Putting a target on the upside, look for an objective of 48.00 to get started and a possible move to $50.00 if we get some momentum.
Time to ring the mid-week bell
Call in or email your DT broker if these ideas peak your interest or if you have another idea on your mind…
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