Today is Sunday, March 24th and we are summing up the trading week results.
Open positions at the current moment are:
Cotton, long position – 8 contracts;
Orange Juice, long position – 7 contracts;
Soybean Meal, long position – 12 contracts.
Overall it was very exciting week. Let’s consider last week’s deals in details.
Copper. We had SetUp to buy. Since the beginning of January 2019, we have entered the trade several times. The total year to date profit from the copper has been equal to $6,480. We opened the last trade on 12/03/19. This trade was on pullback with a reduced risk.
Last week, a setup to sell appeared. We mentioned this in the previous weekly trading results. This setup to sell forced us to be extremely careful in the long trade in copper. We closed the deal on time without any loss as we had seen that the spread was showing us possible price reduction.
The trade was closed to zero with all commissions. Worth noting that the filter spread had worked perfectly well, because after we had exited the trade, the copper price decreased by more than 2%.
Now, if we look at copper, there is a setup to sell, but there are also a lot of signals telling us that the price may stand in flat for some time.
This is a seasonal trend and sentiment, when the public is in short positions. In addition to previous, momentum trend shows us the possibility of price movement up. Setup to sell, professional index and momentum are in favor of copper’s sale. So with regards to copper we are waiting for the additional signals to make a decision. We are going to look at copper next week.
The other last week’s deal is the orange juice long trade.
On the 9th week, there was juice setup to buy, but it was canceled as the price rewrote the low. But since operators were in extremely long positions, we continued to monitor the juice. The current deal is interesting due to the price being in the flat for the long time and after moving sharply up. So we entered the deal.
What do we expect now from the orange juice price movement?
If the price overwrites Thursday high, then we’ll move the stop loss under Friday’s low. It may be noted that the price went down and immediately came back. This is a very bullish signal. In addition, during the day the juice was trading at a Premium. We are expecting the upward movement of the juice to continue.
If we look at the weekly chart, then we can see that from the beginning of the year there have been two setups to buy. So here there is a strong level of operator’s support. This is also confirmed by the operator’s positions being in the positive zone. Cotton also has a seasonal trend. At the beginning the price didn’t move according to it but now the seasonality scenario is being implemented. We are in a deal.
With regards to the trade – the situation is similar to orange juice. If the price rewrites Thursday high, then we will move the stop loss under the low of Wednesday.
Setup for soybean meal was on week 9th too. A very good level of support has been formed since mid-2018. The net operators positions are in positive zone. Seasonality shows the signal to buy. Sentiment is at the low, which indicates good buying opportunities.
If we look at the monthly chart, then we can see that COT commercial is entering in a positive zone, there have always been strong upward price movements. Now we see a good weekly accumulation of soybean meal. We are expecting a good price movement for 2-3 months. There is quite realistic to see the price of 400.
For soybean meal, it makes sense to move the stop loss under the low Wednesday according to three bar system.
The Sum up the trading week:
this week we closed Copper without fixing the profits and losses.
Today we will plan for the upcoming week and consider new setups.
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