Trading short on Brent Crude (UK Oil), Gold (XAU/USD) in bullish pennant? [Video]
|Have you seen this symmetrical pennant on Gold (XAUUSD)?
I’m Brad Alexander and in this week’s Market Blast Technicals let’s take a look at Natural Gas, Brant Crude (UKOil), and Gold (XAUUSD).
Gold hit this key psychological level of $1800 late last week and price action has formed a symmetrical pennant.
The Stochastic Oscillator is moving upward into bullish territory so we might want to look at this as a bullish pennant.
If we move out to the daily chart, we see that $1800 had been a key level at least twice this year already so we will need to see a break above.
If you have seen our video on trading Divergences, then you would have recognised at least two of these predicting reversals on Brent Crude.
Well, we have just seen a reversal against the trend so we will wait for the Stochastic Oscillator to turn downward from Overbought before selling.
You may have noticed that USD and many other currencies are in consolidation. Why?
No less than four central banks are announcing Interest Rate Decisions and there is an EU Leaders Summit, all on Thursday so be careful, or in fact, have fun!
Price action on USDCAD might be forming a double top so we will keep an eye on this, as well as the price of WTI which affects CAD.
Also, we note that key Fibonacci levels are in action here with 61.8% as resistance and 23.6% as support.
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