Tuesday Technicals – Juicy Opportunity in OJ Futures

Looking at the range of prices in recent years, the potential change in trend, and the subsequent target price for OJ futures, the market is offering a juicy risk-reward opportunity to establish long positions and procure your Orange Juice needs through 2019.  Evidence below.

Weekly continuous OJ Futures

There’s a juicy opportunity in OJ Futures as a potential change in trend looms

Long-term Weekly Chart

  • All the requirements are met for a completed pattern
  • Slope analysis: Wave (c) slope less severe than Wave (a) slope…typical at end of correction
  • Fibonacci: Wave (c) is just about .618 of Wave (a).  Second most common relationship (#1 is equality)
  • Bullish Divergence with momentum and price….often results in change in trend to the upside

 

OJ Futures Continuous Chart

Bullish divergence with momentum and price suggests prices may move to the upside.

 

Daily Continuous Chart

  • Minimum requirements are met for a completed pattern…..cant be surprised if trend changes
  • Bullish Divergence with momentum and price….often results in change in trend to the upside
  • Confidence will build if/when RSI stabilizes above 60.
  • Should be noted the gap in price is due to a contract rollover
  • Target price if wave V of (c) is complete would be 140-145 (guideline of previous 4th wave).