Trading the trend: short NY sugar
Front month NY sugar futures have been consolidating with a slight upward bias over the past few weeks but are expected to soon resume their medium-term downtrend.
We would thus like to short NY sugar with a stop loss at 23.00 and a downside target around 19.00.
(Partial Video Transcript)
Last week's FTSE 100 trading outcome
Hello and welcome to this week's "Trading The trend" on Wednesday, the 17th of January 2024. Last week, we went short the FTSE 100 index. And as you can see here, we did so because we had what is called a Harami pattern, or it was an inside day, and we broke out to the downside and we were expecting further downside to be seen. And our downside target was around 7,500.
And I would still be short on this trade because earlier this morning we just went right through that level and we continue to decline. So, perhaps we can now lower our downside target to around the 7,400 area. But clearly that's been a very profitable trade in a very short space of time.
Today's trading opportunity
Let's look at today's "Trading the trend" and what I would like to do is look at New York sugar front month futures. And you can see here we've been in a downtrend since November of last year and since then have seen a upward correction, but it hasn't got as much momentum as the downside has seen. So for me, it looks pretty likely that we will soon be topping out here and resuming our downtrend, which is why I would like to go short New York sugar and probably do so with a stop loss slightly above the recent highs here, going back to early December of last year.
So today's "Trading, the trend" is to go short New York sugar futures after on current levels with a stop loss around the 23 mark on the downside target around 19.
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