Jan 05 Orange Juice

[zuke]

Just wonder whether anyone else has been scaling into this. I for one have been doing so, looking for a run to 90.

Thoughts?

 

[weyhey]

Be careful OJ is run by insiders.

 

[Carley1]

Scaling OJ

This was the ultimate scale trade, especially for those that are playing with excessively deep pockets. We believe that the current pullback is simply a correction, and that the market is capable of getting back to 90 and beyond within the next few months. Fundamentals are looking bullish, it is important to trade the short term on technicals.
Thanks,
Carley Garner

 

[bgold]

Just wonder whether anyone else has been scaling into this. I for one have been doing so, looking for a run to 90.

Thoughts?

Technically i would agree that OJ can/will have at least another bull leg to >90
For the immediate term, I see several inside days after a 7pt decline. Doesn't that point to substantial volatility in near term? If so, i fear that there is another 4/5pts of risk without affecting the bull outlook.
So, yes one can scale in, but IMH the stop has to be set below 70 which for now i think is not a good enough trade for me.

I'll wait until OJ tips its hand either via a gap up or demonstrates that it finds support above the july highs. Considering Nov contract soon expires one shopuld probably also look at the next contract (F or H). I see that the H5-X4 spread trades at high end of 6month range (does that mean current weakness in X4 is pure technical??)

Keen to hear your insights?