This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, July 5, 2017.
There is a trade opportunity based on potential breakout in the Orange Juice futures market. The market gapped open higher today. Looking for continuation on a break of today’s session high and the 50-day Moving Average. The Stochastic indicator is showing Momentum to the upside. The Trend Seeker is neutral, with a neutral ranking. The MACD indictor agrees with Trend Seeker as it’s below the baseline, though hooked up.
Buy the November 2017 Orange Juice futures contract on 139.50 on a stop order, GTC.
Initial Margin = $1,761 Maintenance Margin = $1,601
Stop loss: Place sell stop at 135.50, below the 20-day Moving Average and gap, GTC ($600)
Target: Place sell limit at 148.00, a potential resistance level, GTC. ($1,275)
November 2017 OJ Chart from Bar Chart
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.
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