Forex trading short WTI Oil, Dow Jones in symmetrical pennant – Silver flying high [Video]
![Forex trading short WTI Oil, Dow Jones in symmetrical pennant – Silver flying high [Video]](https://editorial.fxsstatic.com/images/i/Commodities_Oil-1_XtraLarge.jpg)
Two days ago the US CPI report came in a little higher than expected and the markets panicked.
This always gives us a great opportunity.
When you see dramatic market moves based on small misses in the economic news, you have a great chance to trade the reversal.
As we can see, not only did the markets recover as bargain-hunting investors bought back in: price action on the S&P500 is now near record levels.
However, as we know, the current administration in the White House may do something to change all that so be aware.
From the technical side, price action the DJIA has formed a symmetrical pennant so keep an eye on these trend lines.
The stochastic oscillator is overbought and well.
If we add Fibonacci, we see that the 23.6% and the 38.2% are key levels below so, if we see another crash we will keep an eye on these levels.
Speaking of Fibonacci, if we look at USDJPY, we see 3 key levels of support and resistance to keep an eye on.
The question is, will JPY strength continue?
We see bearish confluence on the stochastic oscillator and we might get an early crossover.
Two days ago, not only did the US CPI come in high, but the US Crude Oil inventories came in much higher driving price action lower.
Price has rebounded a bit but the stochastic oscillator is overbought and turning over so we will wait for a confirmation for a short position.
Silver is flying higher but it has a way to go before we get back to all-time highs.
We still see bullish confluence on the stochastic oscillator and MACD so we will wait for more confirmation of a reversal before going short.
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
