This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, September 27, 2017.
There is a trade opportunity based on Trend Line breakout today in the Unleaded Gasoline (RBOB) futures market. There is a Double Top Formation with highs at 1.6258 (1/04/17) and 1.6822 (9/29/17). The Stochastic indicator is showing strong Momentum to the downside. The MACD indicator is showing a potential shift away from its current uptrend (most of that was the rally throughout the hurricane season). The 20-day and 50-day Moving Averages are parabolic, while the 200-day Moving Average has remained steady.
Sell the November 2017 RBOB futures contract at 1.6050 on a stop order, GTC.
Entry is a break of today’s low / Initial Margin = $4,675 Maintenance Margin = $4,250 / LTD is 9/29/17
If filled:
Stop loss: Place buy stop on 1.6320, above recent contract highs, GTC (Initial risk: $1,134)
Target: Place buy limit on 1.5520, near the 50% Fibonacci Retracement, GTC. ($2,226)
November 2017 RBOB Chart from Bar Chart
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