Commodities Corner Trade Ideas: +2000pips Since October 2015 Inception
In October this year we introduced our followers to a new weekly feature Commodities Corner analysis and trade ideas, where we check in with all things Commodity-related specifically focusing on Gold, WTI Crude, and the primary Commodity correlated FX pairs AUDUSD, NZDUSD and USDCAD.
In the weekly updates, we cover the fundamental drivers moving the markets in the commodity world. We use technical takeaways from the charts and sentiment reads from the weekly COT reports culminating in the identification of potential premium trading locations for the week ahead.
Since the features inception in October 2015 we have given readers a great feel for the Commodities markets identifying and aligning well with dominant trends in the markets. Prior to Christmas we nailed the dead cat bounce in crude alerting our readers to the high probability that the much lauded bounce in black gold was likely an opportunity to realigning with the broader trend, suggesting that the bounce would fail to garner support and we would see price roll over to test and probably print new lows as it has since last week.
From a trading perspective we issued three key trading ideas for the Commodities space. Firstly we identified a high probability set up in the Yellow metal market, where we suggested shorting the corrective rally in Gold at the end of September. Our inaugural trade in the commodities space developed favorably and we adjusted targets to increase returns as outlined in our November 12th report ‘Our Gold Shorts From 1190 To Test Key Support target’. Ultimately this trade netted 1100pips in profit from our original 200pip risk.
Our second forray into Commodity related FX trading came with the long set up we highlighted in the AUDUSD. This trade was a higher risk counter trend trade, the price action tracked our technical set up very well and we were able to actually take a low risk entry which we documented in our report on the 11th November ‘Aussie, Loonie & Kiwi On Watch’. This trade developed favorably but didn’t quite hit our final objective triggering our trailing stops for a 200pip profit.
At the beginning of 2016 we highlighted a high probability bullish pattern in Gold that produced long positions at 1080 which we exited on Friday at 1150 for a 700piop gain.
Be sure to follow our views on the commodity space in our weekly Commodities Corner reports .
For updates on Commodities Corner set ups and the other trades I am currently monitoring be sure to follow me on Twitter @LFXPatrick