Hello and welcome to another lesson in CantosCharts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index and welcome to another lesson using technical analysis and charts in an ongoing series on how to learn trading using technical analysis and of course, various chart patterns and as always, these are simply for information and educational purposes only.

We'll continue this series by taking a look at market reviews because there is some exciting things happening right across various sections of the markets. That's in currencies, commodities and of course stock indices.

Take a look at this chart here. This is again another interesting market which a lot of people have been focusing on and here we're looking at a bar chart.

Now of course bar charts can be used for technical analysis, but over the last few months we have been using a different type of chart and that is of course candlesticks.

Now straight away you'll notice that this has been in an uptrend. Now this of course is gold and gold, oil and various other commodities have been receiving quite a few hits because it has been in a parabolic move towards the upside.

Well this one is no different to other commodities. We've seen higher highs, higher lows. More importantly, we've been taking out the recent highs and the question is really is gold going towards that $2,000 mark. Well, we're just going to have to wait and see. But right now we have various bits of information that we could use if we want to continue to trade on the bullish side of gold.

Now this chart here, this is the weekly, and of course we always use multiple timeframes and recently we've been trending above the $1,436. But can you notice that recently, in fact not recently, but right now there is a candlesticks pattern which is suggesting that we might be heading towards a short-term reversal.

Now we're going to have to wait and see if this of course takes place, but I really want to keep a focus on this $1,310 level and this of course is the June contract. So if gold price is going to continue higher it would need to stay above $1,310, so we might see a pullback right now in the next few weeks and we're going to have to keep an eye on the daily charts to see how this pans out.

But if we add the moving average, there's a possible support at the $1,400 area. So, in other words, it doesn't really need to go all the way down to $1,310, but if gold prices fall down and let's see the moving average provides support around the $1,400 area.

What we're looking for is once gold prices reach that moving average we want to try and look for bullish reversals once it gets back above the moving average and then see if we can take out the recent highs around the $1,480, even the sort of $1,500 area.

This of course is a parabolic indicator. What we notice is once the parabolic had been broken above the $1,409 gold prices escalated even higher there. The parabolic support is coming in at $1,365.

So the way to trade this really is to look at the weekly charts to give you the overall trend and then use the daily charts to try and find suitable entry points and then use the candlesticks chart patterns to perfect the precise entry point because that gives you very good entries and very, very good stop loss areas.

So we've used multiple timeframes and of course gold, oil and various other commodities have been very bullish. We don't know when these markets are going to turn bearish. We just know that we want to stay with the trend. So we would ideally look for pullbacks if the parabolics are bullish and the moving average is bullish, looking at daily charts for nice entry points and then of course keep very, very tight stops.

Over the next few weeks we're going to keep a close eye on oil and gold because there are some interesting things happening here from a contraction and expansion point of view and I will go into more detail in the next few lessons and of course various stock indices such as the FTSE 100 and the Dow Jones are also looking very, very interesting.

So it's going to be an exciting next few weeks, so stay turned to CantosCharts Masterclass. But in the meantime, use the large degree timeframe for your trend, use the short-term timeframe for your entries and exits and of course candlesticks patterns, the parabolics and the moving averages to give you some nice entry points and keep it simple as always.

I hope this lesson has been useful for you. It's been a pleasure being with you. I look forward to seeing you in the next lesson. In the meantime, have a great and safe trading week. This is Sandy Jadeja for CantosCharts Masterclass.