Hello, welcome to CantosCharts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index. Welcome back to another lesson in technical analysis and how to apply technical tools to your trading. As always, this is simply for information and education purposes only.

We will continue to taking a look at some of the markets that are actually moving at the moment. I'm going to continue the theme by looking at the same markets, because I think it's a good idea to see where we left off, and to see how the technical analysis has actually helped us or maybe not.

Now, main thing is obviously you want to focus on price action, because that's essentially the main tool that we would be using as traders. We are also being taking a look at, or a continuation of a look at candlestick patterns. And of course, we'll take a look at the major trend of the market in question.

Now, here we had the price of gold, and pretty much this is where we last left off. And I said to you that there was a southern doji, which occurred at $1,155. Now on the short-term the trend was actually down. What we really wanted to see was a break above the $1,203 high, which we saw poke just a little bit towards the last lesson.

But right now what can we conclude that we've actually learnt from the previous lessons? Well, the first thing is that we had a southern doji, we had a market decline. And as I said in the candlestick lessons when you start seeing doji's there's a possibility of a change in direction trend, and that's what we saw at $1,155.

And then, of course, that was followed by a break above that particular candlestick and then we saw a continuation. So the next thing we were really looking for was a break above the $1,203 and then the projection going back up towards the $1,266.

Well if we take a look at what actually happened since then we did break above the $1,203, so that's a good sign, gold could be considered to be bullish from that perspective at least. We saw a little bit of a consolidation, or what we call a bull flag occur in this section over here. And then we saw a continuation towards the upside.

So, where are we right now? What can the price of gold tell us immediately? Well, the main thing is we've seen the thrust towards the outside. That's telling us that the momentum is at least strong. We need to start looking at what we are actually coming up towards.

Now for me the $1,226 is an important area. But there is another area which is going to be a little bit important just before that.

Now before I do that we'll take a look at the parabolic SAR, because previously we noticed that the parabolic SAR was pointing towards the downside, once gold price has broken above the $1,203 that then placed the market in a bullish trend, and at the moment gold is still above the parabolic SAR, which is suggesting that there is still possibly more higher prices to come.

Now the $1,250 level, as I said the $1,266 is where I've really got my eye on, but the round numbers, the psychological numbers of $1,250 is a good area to look for right now. So as you approach the $1,250 area what some traders may be looking for is the potential for a further decline, because we've has this steep move towards the upside.

Well the idea is to keep an eye at the $1,250 level, and also the $1,266 level because you might form a double top pattern there. But at the moment, if we start observing the $1,250 and start seeing some candlestick patterns, which may possibly give us some reversals, then it could suggest that we might see a pull back.

So what do we want to look for, possibly another doji pattern, maybe a bearish engulfing pattern, or even a bearish harami? So refer back to the previous lessons to learn about how to apply some of these techniques. But at the moment as far as I'm concerned this market still looks bullish. And of course, we've seen the indices come down and this is working with a nice correlation towards a down [ ] in the indices.

Now, if we take a look at the weekly chart we can see that the uptrend is still continuing. The thing that stands out the most is that we've got higher high's and higher low's, so that's a good sign.

We really do what to see a break above that $1,266 high to confirm that this is still in a longer term a bullish trend. So until that actually happens we could safely say that the larger degree trend is up.

Right now currently we would be stuck in a range between $1,266 to $1,155, and we'd be looking for a break above the $1,266 to confirm that the major trend is still on the upside.

So, as I said before always observe the price action. Use multiple timeframes, don't just look at the hourly or the daily do your weeklies and your monthlies because they are very, very useful. And then use the shorter term time frames for trend and entry.

And of course look at the important support and resistance levels, anything which has been resistant before might be resistant right now. And of course those physiological numbers as well. And I always say that the parabolic SAR is a tool as to help you to determine where the trend is right now.

Well I hope you've enjoyed this lesson. I'll look forward to seeing you in the next trading lesson. In the meantime, have a great and a safe trading week. This is Sandy Jadeja.