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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Trade on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
