November orange juice (OJX25) futures present a buying opportunity on more price strength.
See on the daily bar chart for November frozen concentrated orange juice futures (FCOJ) that prices are in a choppy uptrend and the bulls have the overall near-term technical advantage.
Fundamentally, FCOJ prices have been supported by the citrus greening disease and poor crop-weather events like hurricanes and droughts, which have reduced orange production in major growing regions of Florida and Brazil. Better consumer demand for orange juice is also a positive for FCOJ.
A move in November FCOJ futures above chart resistance at last week’s high of $2.5495 would give the bulls more power and it would also become a buying opportunity. The upside price objective would be $3.100 or above. Technical support, for which to place a protective sell stop just below, is located at $2.3025.
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 out to you potential trading opportunities. However, it is up to you to: (1) decide when and if you want to initiate any trades and (2) determine the size of any trades you may initiate. Any trades I discuss are hypothetical in nature.
Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading (and I agree 100%):
Trading commodity futures and options 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 those contracts. You should understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk disclosure documents your broker is required to give you.
