COT Report Analysis 31 May 2022

Hello Everyone,

COT report is available for the last week (May 31, 2022) and we will analyze the COT report Data in this post.

Note: This COT report is published weekly and this is the only latest report that is available right now .The data for contracts is till 31 May 2022 and date of publication of this report is June 03, 2022.You can check the release schedule from CFTC official site from this Link

If you are visiting this page for the first time I recommend you to check the detailed article on how to read COT report by visiting this Link.

If you following this post you already knows that in previous COT report my View was Bullish and the opening price of previous week was 1853 and we have seen some decline first toward the price level of 1828 and then seen a good bullish run and gold tested the price level of 1873 (So net positive +20 Dollars from opening price ) so the idea of previous COT report comes true you can read the previous COT report from trailing data.

Now if we look to the latest COT data we can see that  the Money mangers pulling money from Long Contracts (-8443)  and adding money in short contracts (+1821) also in yesterday trading session we have seen good decline after NFP data and if gold bears able to maintain this pace then we can have test toward the support of 1828 and then 1800 .

COT report sentiment :Bearish

You can check the complete analysis from the following video:

COT Report Analysis 24 May 2022

Hello Everyone,

COT report is available for the last week (May 24, 2022) and we will analyze the COT report Data in this post.

Note: This COT report is published weekly and this is the only latest report that is available right now .The data for contracts is till 24 May 2022 and date of publication of this report is May 27, 2022.You can check the release schedule from CFTC official site from this Link

If you following this post you already knows that in previous COT report my View was bearish but in previous week opening Monday and Tuesday we have seen bounce from the opening price (1846.18) and gold almost tested 1870 in Tuesday trading session but failed to maintain this bullish move and in Wednesday trading session sellers took control and pushed the price towards 1840 Price level. This move indicates that we still have underlying bearish pressure which not allowing buyers to make big move.

After Wednesday we have seen almost flat market and we didn’t see any big move . So the idea of previous report, we can say comes to be neutral .

Now if we look to the latest COT data we can see that  the Money mangers showing some interest this time and adding money into long contracts (+5602) and pulling money from the short contracts (-12095).

In yesterday trading session we have seen that gold tried to breakout the 1860 level and in bottom side 1848 is Holding well. So we can think about the buy only after breakout 1960 on H1 or wait for the rejection from the bottom . For sell better wait price to breakdown the 1848 Level .

COT report sentiment :Bullish

COT Report Analysis 17 May 2022

Hello Everyone,

COT report is available for the last week (May 17, 2022) and we will analyze the COT report Data in this post.

Note: This COT report is published weekly and this is the only latest report that is available right now .The data for contracts is till 17 May 2022 and date of publication of this report is May 20, 2022.You can check the release schedule from CFTC official site from this Link

If you are visiting this page for the first time I recommend you to check the detailed article on how to read COT report by visiting this Link.

If you following this post you already knows that in previous COT report my View was bearish and we have seen a bearish move in last week so the idea of previous COT report comes true on Monday trading session (16/05/2022)  and we have seen a good decline move towards the level of 1786.(24 Dollars Down move).

But after hitting that low Level gold quickly rebound from that major support and remained above this level whole week due to decline on dollar index ,Inflation fear and decline on major stock Indexes.

Now we have latest COT report for this week also and to my surprise it is still showing bearish sentiments from data. As you can see that this time also we have -8359 contracts from the Long position and +10273 in Short contracts (Big Numbers ) and this show us that how smart players are building there positions in the current bullish correction .

The only major Factor that currently helping Gold bulls is the DXY chart , In previous week we have seen good decline on the DXY and this move helped Gold to make a good move and Gold hit almost 1850 Level.

From my view I think the levels that we have to watch for is 1852 and 1860 , if Gold not able to breakout these levels then we can have decline towards 1830 and then 1800 from current price(1846) .You can check the resistance zone on H4 Time frame from the following chart :  

Weekly Analysis Video :

 XAUUSD TRADING STRATGEY THAT WORKS: 

COT Report Analysis 26April 2022

COT Report Analysis 19 April 2022

In previous COT report the sentiments were bullish and gold almost tested the psychological barrier of 2000 (Monday High =1998, total 15 dollars move after the previous analysis), but  after reaching the price level of 1998 sellers aggressively pushed the gold and since that day we have seen sharp decline of price and currently it is trading near to main support (1927).

XAUUSD Chart by TradingView

Now lets discuss the recent COT report data :

If we look into this report (Highlighted under managed money ) we can see that this time Investors pulling money from Long contracts and also adding money into short contracts .

Also as discussed in telegram channel during live trading the Level 1927 is the major support that we have to watch closely .Breakdown of this level can push the price towards the psychological barrier of 1900.

COT report sentiment :Bearish 

COT Report Analysis 12 April 2022

COT Report Analysis 05 April 2022

COT Report Analysis 29 March 2022

COT Report Analysis 22 March 2022

We have COT report for the last week with us and if you look
over to the number of contract in managed money column (Highlighted in Red) you
can see that this time also we can see that the number of long contract is
decreasing (-13006) in long contract compared to previous COT report.

Also the number of short contract is found to be decreased
so from the report we can see that Buyer and Sellers both seems to be confused
at the current price Level but if we talk about the overall sentiments then we
can say that this report generates bearish sentiments like the previous COT
report shared in post below.

As discussed in Weekly prediction video the Level of 1964-66
is major level to watch as we have seen rejection over this zone many time in
recent trading sessions, if gold Able to breakout above this then only we can
expect test toward the Next Resistance Zone (1974-75).

Currently gold is trading above the psychological Level and
support of 1950, so the zone at around 1948-50 is currently acting as support
so breakdown below this can generate bearish sentiments.

You can watch the detailed video for important levels 

COT Report Analysis 19 March 2022

Open Interest Analysis | How to read it Properly  

 

Top
16 Day trading Tips You Should Know

Day trading (also known as intraday trading or
short-term trading) is one of the most misunderstood trading techniques. The
rapid pace at which investment positions move within a single trading day gives
the impression that day trading is riskier or more volatile than other types of
trading. Let’s put that to the test with an overview of some helpful strategic
trading tips for beginners and intermediate traders, and discuss how day
trading really works.

These day trading tips can help traders
of all experience levels create daily trading strategies for their portfolios.

Checklist
for day trading tips & tricks

Top 16 Day Trading Tips

With tons of tips and tricks out there,
what are the top 10 things you should know about?

1. Always have a plan

The most important of all day trading
tips. Don’t risk real money until you have a plan of action. This means you
need to know what you are buying and selling, how much you are going to trade,
and when you are going to trade it. A trader without a plan is a pig headed for
an expensive slaughter.

2. Use current technologies

Since there are thousands of other
traders out there, you need to use all the resources around you to stay one
step ahead. Apart from that, charting platforms offer a variety of ways to
analyse the markets. You can also compare your strategy to historical data to
fill in any cracks. Mobile apps also ensure you have instant access to the
market almost anywhere. Always try to learn advance trading methods like order flow analysis , order flow analysis help you to see what big players planning , you can read about order flow here.

Read more

 

Order Flow Analysis | Understand before you regret 

What is order flow trading? – Introduction, Strategies & Tools

Introduction & Explanation:

Order Flow Analysis | Understand before you regret Traders try to predict market direction based on exchange-traded volumes. Various tools are used for this, which I would like to explain in this article. It is also possible to read the order flow in a normal chart.

Benefits of order flow trading:

Very well suited for short-term trading (day trading and scalping)

See exactly why the price is moving

Get more information about the market

You have advantages over the normal chart trader?

Insight into the current liquidity in the market

Understand the order flow

Before you start order flow trading, you need to understand order flow. How is the price created on the stock exchange and how do the orders work? – I would like to explain this to you in the following section.

In order flow trading, direct pricing on the stock exchange is observed in most cases. The price can change every millisecond. It is said that the price always changes according to supply and demand. This is correct, but how exactly does it work? In the picture below you can see a screenshot of the order book.

 

 

Read more

 

How to read COT Report for Gold and
Other Forex Pairs  

The Commitments of Traders (COT) reports can sometimes give
traders a good idea of ​​future significant movements in the market. The CFTC
requires large speculators and commercial traders or hedges to report their net
positions twice a month.

In general, the big speculator category represents fund
traders and professional traders who hold large positions. Commercial traders
also report their net positions to the CFTC. The number of “non-reportable”
positions is calculated by subtracting the number of large speculative and
trading positions from the total open interest. It is widely believed that this
group of traders are small speculators and hedgers who do not hold positions
large enough to report to the CFTC.

COT data for the chart can be found at
https://www.barchart.com/futures/commitment-of-traders .

 

COT data in the Gold chart | How to read COT Report

The results of the COT report can be used as a tool to give
traders a better understanding of the psychology of the marketplace, the net
position of the commercials in the market and the net position of the major
traders. Large traders (funds) are usually trend followers and will add or
liquidate their positions depending on the technical action of the market since
the report release date.

There are many different ways to analyze the reports, but we
believe that for the most part, the major traders’ net position and the
‘position change’ over a two-week period are the most important numbers to
watch. Remember that the small trader’s net position is typically subject to
either long liquidation or short coverage when the market begins to move
against them.

 

As a result, a classic bullish setup for a given market
would be when large traders are net long and small traders are net short. The
market is in a weakened bullish setup “when” the two-week trend of the large
trader’s position is bearish, or in other words, when the funds are about to
unwind their net long position. This is a warning flag. The larger the small
trader’s net short position (compared to history) and the extent to which small
traders hold a position “against” the trend are factors that will
contribute to the bullishness of the report.

 

Assets for the COT report for Gold and
other Pairs | How to read COT Report

There is a classic bearish market setup when large traders
are net short (bearish if they have increased position in the last two weeks)
and small traders are net long in the market (bearish if the net -Long position
is relatively large and the trend is decisively down). One exception we’ve
noticed lately is the ability of the small trader in T-Bonds to spot the right
direction in the market. It is also important that the futures and options COT
report (which will be released a day later) confirms the situation indicated by
the futures only report.

 

What does the COT report say? How to take
benefits from this report for Gold and other pairs

The report is published weekly on Friday evenings by the
Commodity Futures Trading Commission . The report breaks down the volume of
purchases and sales into three groups: commercial, non-commercial and
non-reporting deals.

The biggest power in the marketplace are the commercials.
These are the major users and producers of the commodity. They do not use the
commodity markets to speculate or make money directly from the markets. They
are the producers and users of the goods. So they sell forward or hedge their
production/demand. They use the markets to sell and supply, not speculate.

There are the non-reporters, probably people like you…
people who trade in smaller volumes; the average trader. Interestingly,
sometimes their record in certain markets is very good, but more often than not
they are wrong.

Every week we find out exactly what the big ones were up to
in the marketplace… but it’s not quite that simple.

The non-commercials are the second most important figure in
the report. These are not quite what you think. It’s not just big traders like
me.

How to use the COT data? or How to read COT report

If you study this much, you will come across something
called the COT Index or Commercials Index. Most followers of the Commitments of
Traders Reports now use this index…

 

Despite what you may have read from other traders (people
who have only been looking at the index for a few years), it is not a black and
white situation. Just because the commercials, the biggest players in the
market, have emerged as buyers doesn’t mean a market will recover. How can this
be true?

Read more