Financial markets weekly overview. Trade list for November 6 – 12

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.

E-Mini S&P500 (ESZ17)

The trend is bullish, the impulse wave develops. A pullback entry point on the Daily timeframe will appear after another correction formation, at the same time the price movement is very active that’s why the reliable market entry is also possible on smaller timeframes.

COT net position indicator increased but didn’t reverse. The major players’ opinion doesn’t still correspond to the market technical picture and it makes sense to reduce the position size when an entry point appears in the trend direction.

Dollar Index (DXY)

The Daily trend is bullish, the impulse wave develops. A pullback buying opportunity will appear after a correction formation on the Daily timeframe. Long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of October 30-31.

COT net position indicator reversed, large speculators are buying and the professionals’ opinion corresponds to the market technical picture.

Euro (EURUSD)

The trend is bearish, the correction movement on the Daily timeframe is nearing completion. Short positions will remain relevant until the market is below the resistance level, the highs of October 25-26. The next target is around the price mark of 1.15.

COT net position indicator continues to decline and the major players’ opinion corresponds to the market technical picture.

Swiss Franc (USDCHF)

The trend is bullish (for USDCHF), another impulse wave develops. A pullback entry point will appear on the Daily timeframe after the correction formation. Large speculators go on selling franc and the professionals’ opinion corresponds to the market technical picture.

British Pound (GBPUSD)

The support level was broken on the Daily timeframe on Thursday, the trend is bearish. The market broke through the triangle formed earlier in the direction that corresponds to the professionals’ opinion. COT net position indicator increased but didn’t revere and the major players’ opinion corresponds to the market technical picture.

Japanese Yen (USDJPY)

The Daily trend is bullish (for USDJPY), the impulse wave develops. A pullback buying opportunity will appear after its completion and another correction formation. USDJPY long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of October 30-31.

Large speculators continue to maintain the trend and sell Yen and the professionals’ opinion corresponds to the market technical picture.

WTI Crude Oil (CLZ17)

The Daily trend is bullish, the impulse wave develops. Long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of October 19-20. COT net position indicator continues to increase, large speculators are buying and the professionals’ opinion corresponds to the Daily trend direction.

Canadian Dollar (USDCAD)

The trend is bullish (for USDCAD), the corection wave develops. USDCAD pullback buying opportunity will appear after its completion. USDCAD long positions will remain relevant until the market is above the nearest support level on the Daily timeframe, the lows of October 18-19.

Large speculators are selling Canadian Dollar and the professionals’ opinion corresponds to the current market technical picture.

Gold (XAUUSD)

The Daily trend is bearish, the correction wave develops. Short positions will remain relevant until the market is below the highs of November 1-3. Large speculators continue to maintain the trend and the professionals’ opinion corresponds to the market technical picture.

Silver (XAGUSD)

The trend is bearish, the correction came to an end on the Daily timeframe on Thursday, the impulse wave develops. Short positions will remain relevant until the market is below the highs of November 1-3.

COT net position indicator reversed, large speulators are selling and the professionals’ opinion corresponds to the market technical picture.

Australian Dollar (AUDUSD)

The market remains in downtrend, the impulse wave develops on the Daily timeframe. Short positions will remain relevant until the market is below the highs of November 2-3. A pullback entry point will appear after the correction formation on the Daily timeframe.

Large speculators go on selling and the professionals’ opinion corresponds to the market technical picture.

New Zealand Dollar (NZDUSD)

The Daily trend is bearish, the correction wave develops. Short positions will remain relevant until the market is below the highs of October 13-17. Large speculators continue to maintain the trend and the major players’ opinion corresponds to the market technical picture.

Russian rouble (USDRUB)

The resistance level was broken on the Daily timeframe on Friday, the trend changed. The trend is bullish (for USDRUB), the impulse wave develops, a pullback entry point will appear after the correction formation on the Daily timeframe.

Large speculators continue to buy Rouble and the professionals’ opinion doesn’t correspond to the market technical picture now.

Conclusions

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 Gold, EURUSD, EURGBP.

In the near future USDCHF, GBPUSD, USDJPY, USDCAD, CADJPY can become noteworthy depending on the market correction depth.

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!