For the Week of January 03, 2017
This weekly feature examines chart formations, along with technical indicators, of two to three commodity markets. Breakouts of these formations may lead to trading recommendations published by the Trade Spotlight advisory service.
Highlighting This Week’s Potential Breakouts:
The March 2017 Chicago Wheat futures contract is setting up for a potential breakout to the upside. There is a trend line above recent session highs acting as a resistance level with touches of the trend line from mid-October, through early and late November, and into mid-December. A close above the trend line triggers an entry to the upside. The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is currently down, though with a neutral ranking. Perhaps on a close above the trend line the Trend Seeker will change to up. The MACD, a trend indicator, has hooked bullish below the baseline. The Stochastic indicator, a momentum indicator, is weak but showing some upside momentum potential. The 20-day and 50-day Moving Averages are flat, but converging. A crossover of these two averages is another bullish confirmation. A stop loss should go below the double bottom lows of 393’0 (12/01/16) and 392’6 (12/23/16), or at least below the 400’0 price level. The upside target is high of the 10/14/16 trading session and first point on the trend line (445’6).
The March 2017 Feeder Cattle futures contract appears to be rolling over to the downside after two months of rallying 20.000 points. The contract has found resistance near the 128.000 price level over the last two trading weeks. A trend line has formed with the recent session lows along the 20-day Moving Average, which is where the current contract price is a trading (125.200). A crossover of this Moving Average with the 50-day Moving Average confirms a short entry trade. More so a close below the trade line will trigger the short entry opportunity. The Trend Seeker (a U.S. Chart Company tool to help identify a market’s trend) is currently up, though with a weak ranking. The MACD, a trend indicator, has hooked bearish above the baseline. The Stochastic indicator, a momentum indicator, has shifted downward. A stop loss would be placed above the recent session highs and resistance level (128.000). The downside target is 118.400, a 50% retracement of the last two months rally.
Try Trade Spotlight: Futures – for 30 Days
Trade Spotlight: Futures – Trial - Trade Spotlight Futures is an email advisory that provides futures contract trade setups accompanied by definitive trade management. Trade setups are developed by applying the GBE trading methodology of chart formation breakouts confirmed through key technical indicators.
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.