Brent Crude Hits $120…Again! Gold XAUUSD Continuing Bear Run. Momentum Trading with cTrader Parabolic SAR.

In today’s GCI Market Outlook, let’s take a look at Forex Trading on AUDUSD, Gold, XAUUSD, the S&P500, the Dow Jones, WTI, and Brent Crude Oil.

Just a reminder that these videos are intended as educational, we are only observing current market conditions, and these are not to be considered as trading advice.

Brent Crude reached $120 yesterday based on escalating tensions in the Strait of Hormuz.

You will note a huge whipsaw yesterday on both WTI and Brent.

If we zoom into the 30-minute chart, we can get a better look.

This rapid price action was based on reports of ships being fired on in the Strait.

The point being, when you hear dramatic news like this, there are almost always opportunities when things calm down, even in minutes or hours.

You will note that the spread between WTI and Brent is now over $12 where it should normally be about $5 or $6.

Then, I would suggest checking the US inventory reports tomorrow as the figures could create some volatility and some opportunities.

If inventories are higher than expected, the spread will widen even more, big players buy WTI, and sell Brent futures to take advantage of the arbitrage.

In our last video, we were looking at a descending triangle in gold, and price has broken through support and is now trying to shake this key level.

More importantly, we see a clear downward trend and price action may rise to the upper trend line and fall again.

Let’s keep an eye on that.

While we are here, let’s take a look at a momentum indicator called the Parabolic SAR.

You can find it on cTrader under Indicators and Trend.

Basically, a series of dots above price action indicates bearish activity and vice versa.

Also, when the dots spread out, this indicates strong downward momentum.

Of course, fundamental events will override technical indicators, so keep an eye on the news.

We have the US Non-Farm Payrolls this Friday, which could affect the price of gold by giving the US Federal Reserve its next clues on future interest rates.

One of the reasons for the fall in gold is that investors are seeing equities as a good investment and are moving out of safe havens like gold.

We see the S&P500 and NASDAQ as a one-way street with strong corporate earnings and tech investment opportunities.

The Dow Jones Industrial Average has pulled back and is lagging behind due to geopolitical tensions, but this index very often catches up, so let’s keep an eye on this.

We still see AUD continuing stronger, but some analysts feel this may be coming to an end.

We have an interest rate decision today, so let’s catch up with this in our next video.

That’s all for now.

CFDs and FX are leveraged products, and your capital may be at risk.