Trading the Trend: long orange juice
Orange juice futures prices are expected to continue their upward trajectory. We would thus like to go long front month orange juice futures with an upside target at $3.30 and a stop-loss at $2.87.
(Video Transcript)
Going long on USD/CNY price paid off
Hello, and welcome to Trading the Trend on Wednesday, 16 August 2023. Last week, my colleague Jeremy Naylor went long the US dollar versus the Chinese yuan, and he did so for fundamental and technical reasons.
And as you can see here, that trade worked out really well on the daily chart, because he went long around CN¥7.22, and now we're trading around CN¥7.32, and are heading towards the high seen back in October of 2022, around CN¥7.37.
What I would suggest you can do with that trade is basically to move your stop loss level to break even, thereby having a free trade on from now on. Now this brings me to this week's Trading the Trend.
OJ share prices stay juicey
As you can see here, orange juice prices keep on rising, and the trend is still pointing higher. We've now had a break above the recent minor highs of this sideways consolidation phase.
And therefore I'd like to go long again on orange juice around $3, or between $3.04 and $3, with a stop loss just below the recent or early August lows at $2.87, and that incidentally was basically where the orange juice price stabilised around the May highs.
Some investors might think it's risky to buy into a market which is making all-time highs or multi-year highs. But as you can see here, the worry was the same back in October of last year when we were trading around $2 with regards to orange juice, and then yet we went much higher to the current $3 and so forth.
The trend is your friend
So, the trend is your friend, that's what Trading the Trend is all about, and as you can see here, we are now likely to continue this upward trend in the price of orange juices.
This week's Trading the Trend is to go long orange juice with a stop loss below $2.87 and an upside target of around $3.30.
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