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.
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.
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.