WTI Crude Oil in Descending Triangle. Forex Trading Short (again) AUDCAD. USDJPY in Rising Wedge. Buy-in the Dip on the Dow Jones Industrial Average.

In today’s GCI Market Outlook let’s take a look at Forex Trading on the Dow Jones Industrial Average, CADJPY, WTI Crude Oil, and AUDCAD.

Last time we were looking at a short position on AUDCAD and look what happened.

The entry point was a perfect storm of technical signals including price action reaching the upper trend line in a bear run.

The stochastic oscillator moved well into overbought territory and turned down.

And, this evening star candlestick pattern with a bearish engulfing candle helped as well.

The trade was closed with the stochastic oscillator being oversold and we may be looking at a repeat soon.

Yesterday, Brent Crude and WTI rose based on the European Union issuing more sanctions on Russian Oil.

We see price action on WTI in a descending triangle, as we have reported a few times now.

If we move out to the 4-hour chart, we see price action consolidating at resistance and the stochastic oscillator looking very overbought.

We are seeing a bit of JPY weakness but almost every pair has price action in a rising wedge.

This is a bearish signal indicating possible JPY strength and, with next week’s Interest Rate decision, we still aren’t sure which way they will go.

You will also note that most pairs have an overbought stochastic oscillator.

The NASDAQ and the S&P500 are looking bullish but the Dow Jones Industrial Average and the Russell 2000 are declining.

This is likely due to political uncertainty over the potential clown car that represents the next US cabinet appointments.

We see the stochastic oscillator very oversold and crossing and we will watch our trend lines.

That’s all for now.

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