Hello Insiders and Traders,
Today is Sunday, December 29nd and we are briefly summing up short trading week.
Swiss Franc, 5,125.
Open positions at the end of week are:
Cocoa, short position – 8.
Let’s analyze last trading week’s deals in details.
Firstly, this is our map of COT-Setups for week 52nd.
SWISS FRANC (open position)
SetUp to sell for Swiss Franc was formed in the weekly trading plan W50. There was divergence in the momentum. Price increase supported by seasonality. Entry to the position was via pattern MA18. We traded 10 contracts.
Position has been closed manually because we wanted to avoid high volatility during the holidays. We earned $5,125.
COCOA (open position)
Setup for sell was on week 48th.
If we look at the available COT data, when the price drops, the COT index does not move up and discharge after the drop. We are sure that after the publication of COT data, the picture wouldn’t fundamentally change. We think that cocoa has a chance to move down.
According to the supply and demand indicator, there is divergence and the indicator is pointing down. There are a lot of factors to continue moving down. This is a seasonal drop, a rebound from MA18. The accumulation and distribution is also bearish.
There are high chances that the downward movement may continue.
For our open position, we move a part of the position to breakeven. Stop loss of a second part of position is moving above friday high + 1 tick. In a bad scenario, there will be a small loss.
The index is growing, making new highs. The long position is the most profitable in the commodity market in our opinion.
To sum up the trading week:
Swiss Franc profit $5,125;
Total profit $5,125
That’s all about our trading in this week.
Happy New Year!
Trade smart, Insider Week team
Our Trading Performance HERE
Our COT-Trading Service https://insider-week.com/iw-cot-trading/