Yellow zones- critical zones based on the monthly time frame
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
From last week’s COT Report we can’t see any drastic changes towards a single contract size. Both “long” and “short” positions have increased their sizes with the same amount. Next week’s report will be crucial for us in order to get a better grasp how the institutions will be play out their cards for the next few weeks.
Since the beginning of June, the price is in a “parallel” channel (4H time frame) which was respected multiple times and there wasn’t a single definitive close below/above it since then.
Last week price got rejected just bellow the 1820.000 area and so it created an hourly critical zone. Since then the price is ranging between the hourly critical zone and the monthly critical zone. The last touch of the parallel channel was with the bottom trendline and now we can expect an attempt towards the upper side near the 1840 area.
We have 2 scenarios with high possibilities after the price received support from the 0.5 Fibonacci level:
1. Price receiving support near the bottom trendline again and then going for a close above the hourly critical zone.
2. Price making a false breakout trough the bottom trendline and receiving support from the monthly critical. Then it will go for a close above the hourly critical zone.
Of course, there is always the chance for a strong close bellow the trendline, without a rejection from the monthly critical. This will mean that a trend reversal is ready to take place.
Happy Trading!
Red zones- critical zones based on the daily time frame
Blue zones – critical zones based on the 4h time frame
Orange zones – critical zones based on the 1h time frame
From last week’s COT Report we can’t see any drastic changes towards a single contract size. Both “long” and “short” positions have increased their sizes with the same amount. Next week’s report will be crucial for us in order to get a better grasp how the institutions will be play out their cards for the next few weeks.
Since the beginning of June, the price is in a “parallel” channel (4H time frame) which was respected multiple times and there wasn’t a single definitive close below/above it since then.
Last week price got rejected just bellow the 1820.000 area and so it created an hourly critical zone. Since then the price is ranging between the hourly critical zone and the monthly critical zone. The last touch of the parallel channel was with the bottom trendline and now we can expect an attempt towards the upper side near the 1840 area.
We have 2 scenarios with high possibilities after the price received support from the 0.5 Fibonacci level:
1. Price receiving support near the bottom trendline again and then going for a close above the hourly critical zone.
2. Price making a false breakout trough the bottom trendline and receiving support from the monthly critical. Then it will go for a close above the hourly critical zone.
Of course, there is always the chance for a strong close bellow the trendline, without a rejection from the monthly critical. This will mean that a trend reversal is ready to take place.
Happy Trading!