Orange juice prices are, like many other commodities, determined by supply and demand. However it’s the supply side of the equation that really moves the markets and this year the price has been affected by the news that the crop is expected to be smaller this year due to adverse weather conditions and a reduction in supply from Florida, one of the largest suppliers of orange juice.

As a result the orange juice futures are now making new yearly highs. The November contract is currently at the highest point of the year (along with all the other contracts of course) at 113.95.

Now the point I want to make is that if you had traded this contract using the trade triangles from Marketclub (which I highly recommend by the way), you could have made some very decent profits trading orange juice in the last few months.

A good way of using these triangles is to use the monthly signals to determine the trend and the weekly signals for your entry points.

So in the case of the November contract there was a bullish monthly signal back in April (which has remained in place ever since). So if you had traded the two weekly (buy) signals that have occurred since then, you could have made some handsome returns.

For instance there was a weekly buy signal on July 6th at 87.50 which preceded a move all the way up to the 108 region, and there was another one just yesterday at 107.70 (current price = 114.50).

So the point is that if you want to trade commodities (just like Eddie Murphy famously did in the film Trading Places) you could do a lot worse than sign up to a service such as Marketclub because they provide you with some highly profitable trading signals.

 

 

Filed under: Commodities

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