FCOJ (OJK26) futures may present a buying opportunity on excessive price strength.
On the daily bar chart for May frozen orange juice futures, see that the bullish price line is in place and bulls have near-term technical gains.
Fundamentally, FCOJ prices were supported by global supply shortages caused by citrus greening disease and severe weather (hurricane, drought) in high-producing regions in Florida and Brazil.
A move above the chart resistance at $1.8795 this week’s high in May will give bulls renewed strength and could also become a buying opportunity. The upside price target would be $2.4500, or above. Technical support, for which a protective sell stop is located below, is located at $1.6300.
Important note: I am not a futures broker and do not manage any trading accounts other than my own personal account. It is my goal to point you to potential business opportunities. However, it is up to you to: (1) decide when and if you want to start any trades and (2) determine the size of any trades you can start. Any trades I discuss are speculative in nature.
Here’s what the Commodity Futures Trading Commission (CFTC) has to say about futures trading (and I agree 100%):
Commodity futures and options trading is not for everyone. It is a volatile, complex and risky business. Before you invest any money in futures or options contracts, you should consider your financial experience, goals and financial resources, and know how much you can afford to lose above and beyond your initial payment to a broker. You should understand commodity futures and options contracts and your obligations in entering into these contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents that your broker provides you.
As of the date of publication, Jim Wyckoff had no positions (either directly or indirectly) in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
