Free webinar on FuturesPros - How to Identify the “Edges” in a Market
Expert: Gary Fullett
Start: Wed, Mar 16, 2011, 10:00 ET
End: Wed, Mar 16, 2011, 11:00 ET
Join Wyckoff expert Gary Fullett as he discusses the importance of watching price and volume action when entering and exiting trades. Price and volume are the only indicators that can be seen live. Other indicators are lagging, meaning you could miss the trade before you realize what has happened. He will discuss the “Three Principles of Wyckoff” which are essential in trading. Defining these principles in your chart reading will allow you to discover the edges of the markets, and possible trading opportunities.
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THE MARKET WORD - COFFEE
The May Coffee contract has come off 13 ½ year highs as of late. Cash Coffee Sales have been lackluster as of late. These prices need increased demand and continued tight supplies. The temporary top may be in. Typically, we watch for the Brazilian frost time for this market. Winter is usually when demand is increased. The seasonality may not be totally dependable as Mexico may also produce Coffee. Vietnam may also grow coffee that they wish to market with their festivals. Technically, the May Coffee appears to be coming off an overbought status. The stochastics are crossed and pointed down. We have a consistent selling volume over the last few days. The Wilders Parabolic SAR went into sell mode today!
Sample Trade Opportunity! Sell EKCK11 (May Coffee) at $277.00 LIMIT; Buy EKCK11 at $278.30 STOP! Target order; Buy EKCK11 at $261.00 LIMIT. The potential risk on this trade would be $487.50 and the potential profit $6000.00. The expiration would be April 20th.
Futures Trading analysis written by DeWayne Reeves for Futurespros
Trading Futures and Options on Futures and Cash Forex
transactions involves substantial risk of loss and may not be suitable for
all investors. You should carefully consider whether trading is suitable for
you in light of your circumstances, knowledge, and financial resources. You
may lose all or more of your initial investment. Opinions, market data, and
recommendations are subject to change at any time.