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.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate 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
Prices above are subject to our website terms and agreements. Prices are indicative only
