Today is Sunday, February 02nd and we are summing up trading week.
Open positions at the end of week are:
Australian dollar, short position – 8;
Canadian dollar, short position – 9;
Canadian dollar, short position – 1 (small account);
Palladium, long position – 1.
This is our map of COT-Setups for week 04th.
AUSTRALIAN DOLLAR (open position)
8 contracts were sold in week 04. This is a COT setup from week 03. The price goes down and moves in our direction. Interestingly, Commercial doesn’t buy on this fall. The support line is already broken and this opens a good ranger down.
Seasonality suggests that upward movement is possible, but the price is in a good downtrend and we won’t focus on seasonality in this case. We hope that the price will continue to fall with slight upward corrections as it was at the end of the last year.
On the daily chart we see that the accumulation is bearish, the momentum is bearish, everything is bearish.
So, the position is held. Stop is placing above 01/27 + 1 tick. The decision to move the stop loss will be made today after analyzing new COT reports. There are real chances that the price will reach our target price 0.6487
PALLADIUM (open position)
Position is held. Stop loss is placing above the short-term low.
Let’s see how the situation will develop, but we need to be mentally prepared to accept the loss. Risk per trade is large ($8,800), but potential profit is very large ($40,000). While the price is near MA18 and we are waiting for a rebound from MA18.
CANNADIAN DOLLAR (open position)
There was a good level of resistance from which we opened the trade. Now the price is going down to the support level. There is still a range for movement. We are waiting for movement in our direction. The same deal is opened on a small account.
On the daily chart, we see that a downward movement is possible. The sentiment is directed downward, the accumulation is bearish. Yes, ADX has approached pivot point 60, but we think that for some time the movement will continue. Seasonality here is not working well. It doesn’t need to be addressed.
Last week was downward. There is a high probability that the next week will also be downward. The index falls to the level of support. In the near future we will open short positions. Soft market looks promising to sell which have grown in price recently. In particular, cotton.
To sum up the trading week:
no closed positions
That’s all about our trading in this week.
Next, we are moving to planning trading week 06.
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