Today is Sunday, October 27th and we are summing up the trading week results.
Canadian dollar, 2,385;
Open positions at the end of week are:
Cotton, long position – 5;
Canadian dollar, long position – 12.
Let’s consider last trading week’s deals in details.
Firstly, this is our map of COT-Setups for week 43rd.
Silver (closed position)
SetUp for Silver was published in the weekly trading plan W37.
We were in the short position. The trade was opened more than two weeks ago. We did not see any significant downward movement at all during this period and we decided to leave the position. We tried to break even, but the market did not allow it. Position closed with a loss of $ 1,625. Also the reason for the closure was the impulse of the Platinum price. Very often, metals pull each other. Now dollar is falling sharply as well.
Now we see that it was the right decision. If we didn’t close the position manually, the deal would be closed by stop loss and with big losses.
On the weekly chart, we see that after last price movement the COT index did not discharge at all. That is why, it can be assumed that there will be either a wide flat or attempts to increase the price of silver. The seasonal trend also tells us about possible upward movement.
In more details we will analyze metals on weekly plans.
Cotton (open position)
Setup to buy was on week 41st
There is a global downward movement in cotton. Last week the COT index was discharged and now signals to sell. Sentiment suggests of short position as well. Only the seasonal factor keeps the price. But since the global trend is downward, there are more factors to sell. On the weekly chart, we see that the current week is inside week. Most likely in the near future a setup to buy will be formed.
We see that last week the price did not raise much. Price has not made new highs. There are also two reversal candles in a row. Cotton has a high chance of a correction next week.
Based on the thoughts above, we closed part of the position on cotton. Profit was $ 4,925.
Despite the fact that the accumulation is bullish, here the best solution for the second part of the position is to fix the profit and watch the cotton aside. In more details, we will analyze the instrument when create plans for the trading week 44.
Canadian dollar (open position)
Setup to buy was for New Zealand dollar. We entered into the Canadian dollar, as this instrument looked stronger in terms of price structure. There was no setup for the Canadian dollar. On the weekly chart, we see that СOT index for Canadian is bearish. This sometimes happens. Not so long ago, we did a similar trade on T-BondsTrading week 40.
On the weekly chart, we see that the instrument is heavily overbought. There were no corrections, the %R indicator tells us about a possible downward movement as well. There is a high probability that the instrument will go to correction. Stop loss should be placed closer to the market. Also, an inside day with a close up with a growing trend is a sign of a possible reversal.
Further tools strategies will be analyzed in more details on weekly plans.
What is about closed position? This week, part of the Canadian dollar position was closed to cover the silver loss. The profit was $ 2,385. Stop loss is below the low of Tuesday – 1 tick. We are moving stop loss for this trade on the 3-bar system. We will discuss further plans on weekly plans.
We see that the index has made the new high. We believe that next week for the commodity market will also be growing. We will look for lagging instruments. First of all, sugar, orange juice and coffee look attractive for buy. We will search for interesting futures while forming the trading plan for week 44.
To sum up the trading week:
Canadian dollar, profit 2,385;
Cotton, profit 4,925;
Silver, loss 1,625.
Total profit $ 5,685
Today we will plan for the upcoming week and consider new setups.
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Trade smart, Insider Week team
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