Gold and Dow Jones in ascending triangles – Forex trading short on Brent Crude in descending triangle [Video]
![Gold and Dow Jones in ascending triangles – Forex trading short on Brent Crude in descending triangle [Video]](https://editorial.fxstreet.com/images/Markets/Equities/DowJones/financial-planning-with-stock-chart-and-pen-17530871_XtraLarge.jpg)
We all hope you and yours had a great Christmas.
In our last video, we talked about the Santa Claus Rally which usually happens…yes, at Christmas.
How did it go?
We can see the fall after Jerome Powell’s remarks, the double bottom reversals, and the Santa Claus Rally.
Yesterday stocks fell at the opening in Frankfurt and stayed lower.
Will the Santa Rally continue into January as it sometimes does?
All the US indices look different but we have an ascending on the DJIA.
We might want to wait for a break above with the stochastic oscillator oversold and turning up on the one-hour chart.
However, if we look at the daily chart, we see the stochastic oscillator overbought.
Also, the current level of the DJIA is at the 23.6% Fibonacci level so we need to see a bounce or a break.
We can see from the past that Fib levels are important for this chart.
Speaking of ascending triangles, we see price action on gold in one.
Once the markets come back online next week, we need to see a break or a bounce to understand the direction.
If we look at the USD, it is not helping us as to the next direction of gold as we see holiday consolidation.
We may not see much next week either with New Year’s holidays.
We see price action on Brent Crude in a descending triangle on the daily chart, with support at $71 a barrel.
A short trade might be in the offing if the stochastic oscillator turns over prematurely.
Again, watch out for low liquidity during the next week as many banks, traders and investors will be on holidays.
Author
Brad Alexander
FX Large Limited
Brad became fascinated with the Currency Markets from a young age and researched fundamental analysis.
