Trade of the week: short orange juice futures
Since orange juice futures prices have been rejected by the psychological 500 region throughout this year we expect this resistance area to once again cap.
We thus wish to short orange juice futures with a stop loss at 505 on a daily chart closing basis and a downside target around the 455 level.
(Partial video transcript)
Previous trading outcomes
Axel Rudolph: Hello and welcome to this week's "Trade of the week" on Monday the 25th of November, 2024. A couple of weeks ago we went long the US dollar versus the Japanese yen (USD/JPY). And that trade, looked fine at first. You can see here we went long at ¥153.70, then went up all the way to, just around ¥156.75, but then came off again. And we're still trading above our entry level. So, what you may want to do or do is just raise your stop loss level to your entry level. So you have, in theory, a risk-free trade on.
And last week we had a really, really good trade which was to go long the gold price. So we went long spot gold and you can see here we did so at $2,594.00. Our upside target was $2,700.00, just below that resistance here. And if you haven't cashed this one in, what you can do in this case, is perhaps raise your take profit level to just below today's intraday low, because if we were to fall through it, we would probably be forming a bearish engulfing pattern. And that could lead to short-term downside. So for that reason I would move my stop up so that you cash in a profit whatever happens.
This week's trading opportunity
And this brings me to this week's "Trade of the week". And you can see here that orange juice futures in New York continue to bang against the psychological 500 mark. And every time they do so, and have done so since September, they tend to come off towards the 450 mark or so.
So for that reason, I believe that this major psychological level will continue to act as resistance. And since it's done so already three or four or five times in the last three months, I would like to once again short orange juice futures.
This week's "Trade of the week" is to go short orange juice futures at current levels with a stop loss at about 505 and a downside target at around 455.
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