There is a trade opportunity based on potential 1-2-3 Bottom Formation and Trend Line breakout in the Chicago Wheat futures market. The Stochastic indicator is showing strong Momentum to the upside. The Trend Seeker is currently down, though with a weak ranking. The market has been trading sideways recently. Going long only on a break of the number two point at 448’6 (1/12/18). The MACD indicator today shifted bullish. The 20-day Moving Average is converging on the 50-day Moving Average. set to cross over as soon as this week.
Buy: May 2018 Chicago Wheat futures contract on 449’0 using a stop order, GTC.
Initial Margin = $1,045
Maintenance Margin = $950
- Stop loss: Place sell stop at 426’0, below the 1/16/18 low, GTC (Initial Risk: $1,150)
- Target: Place sell limit at 500’0, the top point on the upper trend line, GTC. ($2,550)
May 2018 Chicago Wheat Chart from Bar Chart
You may trade the mini Chicago futures contract with an Initial Margin of $209 and Maintenance Margin of $190. The risk would be $230 and the profit would be $510 based on the same prices above.
This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Futures, published on Wednesday, January 24, 2018.
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Trade Spotlight: Futures - 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.
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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