We make up a weekly medium-term trade list based on CFTC reports and technical analysis.
The table below provides a description of the technical condition of the market on the most popular financial instruments, as well as information on the large speculators’ actions according to the last COT reports and the previous period.
If you want to use CFTC reports in your trading practice,
you should understand that for an objective assessment of the situation
it’s not enough to know the data of the last report. The dynamic is
more important, in other words, comparing the statistics of large
speculators’ actions in the current period with the previous one, so we
publish both values in the table.
If you want to get more information on the pullback trading tactics and other aspects of trading in the market, watch the «Horizontal levels in trading» video course.
September is one of the most active trading periods of the year when strong price movements take place. For this reason, almost all assets can be interesting on timeframes under Daily. In terms of medium-term trading, financial instruments with the correction close to completion on the Daily timeframe and with potentially the most promising risk-reward ratio are USDRUB, GBPAUD and AUDCHF.
AUDUSD, CHFJPY and EURAUD. are less interesting, but in the near future they can also become noteworthy depending on the depth of the market correction.
After breaking through the triangle, EURUSD may become interesting (the market is likely to break this converging formation down due to large speculators’ active sales).
Other financial instruments in the trade list may be also interesting, but in these markets pullback signals on the Daily timeframe are likely to occur no earlier than a week.
More information on the topic:
- The role of support and resistance levels in the trading plan
- Trading tactics. Breakout trading and pullback trading
- How to use CFTC reports in trading. General concepts
- How to use CFTC reports in trading. The logic of large speculators
Good luck in trading!