Orange Juice Futures
Orange juice futures in the January contract settled last Friday in New York at 114.35 while currently trading at 111.75, up slightly for the week looking to break out to the upside in my opinion soon. If you take a look at the daily chart, the downtrend line remains intact. However, that is in major jeopardy of being broken in next week's trade.
I will be recommending a possible bullish position if prices break the October 13th high of 118.75 while then placing the stop loss under the spike bottom and contract low, which was touched on October 21st at 107.35 as the risk is around $1,700 per contract plus slippage and commission.
Juice prices are now trading above their 20-day but still below their 100-day moving average as the agricultural sector is starting to look strong. I'm bullish on most commodities and equities at this time, and I think we will finish 2020 on a very strong note.
Orange juice is starting to enter the extremely volatile winter season where a frost can crush the orange juice crop in Florida as the volatility is extremely low. That situation will not last much longer, so play this to the upside as the downside is very limited, as I will not take a short position.
TREND: MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE
Silver Futures
Silver futures in the December contract settled last Friday in New York at 23.64 an ounce while currently trading at 25.45 up about $1.90 as prices are near a 7 week high. Continue reading "Will Orange Juice Futures Feel The Squeeze?"