Trading the Trend: long orange juice
Orange juice futures prices are expected to continue their upward trajectory. We would thus like to go long front month orange juice futures with an upside target at $3.30 and a stop-loss at $2.87.
(Video Transcript)
Going long on USD/CNY price paid off
Hello, and welcome to Trading the Trend on Wednesday, 16 August 2023. Last week, my colleague Jeremy Naylor went long the US dollar versus the Chinese yuan, and he did so for fundamental and technical reasons.
And as you can see here, that trade worked out really well on the daily chart, because he went long around CN¥7.22, and now we're trading around CN¥7.32, and are heading towards the high seen back in October of 2022, around CN¥7.37.
What I would suggest you can do with that trade is basically to move your stop loss level to break even, thereby having a free trade on from now on. Now this brings me to this week's Trading the Trend.
OJ share prices stay juicey
As you can see here, orange juice prices keep on rising, and the trend is still pointing higher. We've now had a break above the recent minor highs of this sideways consolidation phase.
And therefore I'd like to go long again on orange juice around $3, or between $3.04 and $3, with a stop loss just below the recent or early August lows at $2.87, and that incidentally was basically where the orange juice price stabilised around the May highs.
Some investors might think it's risky to buy into a market which is making all-time highs or multi-year highs. But as you can see here, the worry was the same back in October of last year when we were trading around $2 with regards to orange juice, and then yet we went much higher to the current $3 and so forth.
The trend is your friend
So, the trend is your friend, that's what Trading the Trend is all about, and as you can see here, we are now likely to continue this upward trend in the price of orange juices.
This week's Trading the Trend is to go long orange juice with a stop loss below $2.87 and an upside target of around $3.30.
This information has been prepared by IG, a trading name of IG Markets 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.
React to volatility on commodity markets
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.
See opportunity on a commodity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Try a risk-free trade
- See whether your hunch pays off
See opportunity on a commodity?
Don’t miss your chance. Upgrade to a live account to take advantage.
- Analyse and deal seamlessly on fast, intuitive charts
- Get spreads from just 0.3 points on Spot Gold
- See and react to breaking news in-platform
See opportunity on a commodity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Forex
- Shares
- Indices
