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Some setups lead us to believe that there is a possible short opportunity on June 2016 Japanese Yen Futures or, if you prefere, a long opportunity on USD/JPY.


Looking at the daily chart, we can see that the price is testing the latest top, facing a resistance level. The February 11 candle, according to the Volume Spread Analysis, can be defined as pseudo upthrust; that of February 24, which is a shooting star candle, can be considered an upthrust; yesterday ended with a buying climax, that could be the warning sign of a bearish reversal pattern.

japanese yen chart pseudo upthrust buying climax resistance bearish trading for purpose

Commitment of Traders

If we look at the COT Index, the strong commercials bearish stance could confirm our guess.

japanese yen cot commitment of traders june 2016 bearish trading for purpose

In addition to these remarks we must consider that, usually, when the price reaches this level, the Central Bank of Japan tends to moderate Yen's price.

Of course, if you are a forex trader, you can read this signal in the opposite direction for USD/JPY, with the prospect of a rebound.

Remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.
Description of a special situation that recently developed in May 2016 Soybean Oil Futures with contrasting clues: price reached a resistance level and formed a shooting star / upthrust, disaggregated Commitment of Traders (COT index) could be considered bearish but seasonality is rising until the beginning of April.

So what?

We wait for a deep retracement in this market, but, as always, time will tell.

Watch the video.

soybean oil bearish video march 2016 trading for purpose

Some setups lead us to believe that, in the medium term, the march 2016 sugar future may point south decidedly.

Volume Spread Analysis: sugar upthrust

First of all, looking at patterns (according to the Volume Spread Analysis), we can see that the last candle is an uphtrust (shooting star candle) with possible bearish implications.

sugar shooting star upthrust trading for purpose

Commitment of traders

If we look at the COT Index, the commercials bearish stance could confirm our guess.

The commercials have started to buy and, on the contrary, small and large speculators began selling: is a strong bearish setup.

sugar cot trading for purpose

Signs of market manipulation

Looking at the chart, we also notice the top has got a marked and well-know rounded shape.

As we know, this is a kind of top that many analysts consider typical of the 'market makers' activity: in this case, the continued uncertainty and ups and downs in the sugar market would have allowed the 'strong hands' to distribute high quantity of contracts without revealing too obviously their goals.

sugar rounded top trading for purpose

We noticed at least three strong reasons to be bearish, but remember that, as Lucretius said: "In this world nothing is certain except for a dark force that makes everything uncertain". Moreover, remember also that this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.

Is the time ripe for a bearish inversion of the 10-year U.S. Treasury Note future?

Looking at patterns (according to the Volume Spread Analysis), we could say that yesterday candle is a pseudo uphtrust (spinning top candle) with possible bearish implications. Today, we notice that until now the price has rejected again at the same level.

note spinning top upthrust

One of our preferred volume indicators - Volume Zone Oscillator - has reached an overbought level and shows a bearish divergence.
It is a further bearish clue, which could prompt us to enter short.

Remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.

After a strong pullback to test the descending 34 days sma, we might expect a decrease of bond future in the short term.
Yesterday ended with a shooting star candlestick (upthrust with extremely high volumes), which represents a possible reversal signal.

 bond shooting star upthrust

In addition, if we try to follow the Elliott waves, we can wait for the step number 5, which should be descending.

bond elliot wave

So, we can expect a decrease of bond price, in the short term, but remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.
The cocoa future scored an impressive rally since the beginning of october. Now, it seems the rally has reached an exhaustion point and in our opinion could begin to roll down.

First of all we can observe the pace set by the circle brackets, which shows us that we should be in proximity of a reversal point.

cocoa circle brackets

Furthermore, observing the seasonality, we note that expectations are bearish.

cocoa seasonality november

Finally, we look at candles and volumes:
- on November 12, we observe high volume appearing, with a narrow spread. This is a strong sign of weakness;
- yesterday, on November 17, we can recognize an upthrust, another clear sign of market weakness.

cocoa vsa

Cocoa could be close to a top. Do you?....
Remember: this is not a trade solicitation and, if you decide to trade, you do it at your own responsibility.

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