There is a trade opportunity based on a Trend Line breakout in the Australian Dollar futures market. The March 2018 contract closed below the lower Trend Line today. The Trend Seeker is up at the moment, though with a weak ranking. The MACD indicator, another trend indicator, appears to be shifting bearish. The Stochastic indicator is showing a change in Momentum to the downside. Selling the contract on a break of today’s session low.
Sell: March 2018 Australian Dollar futures contract at .78240 using a stop order, GTC.
Initial Margin = $1,375
Maintenance Margin = $1,250
- Stop loss: Place buy stop on .78840, the 10/13/17 session high, GTC ($600)
- Target: Place buy limit on .75300, a potential support level, GTC. ($2940)
March 2018 Australian Dollar Chart from BarChart
This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Monday, January 8, 2018.
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.
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 trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.