Hello and welcome to CantosCharts Masterclass. I'm Sandy Jadeja, Chief Technical Analyst for City Index and welcome to another lesson in technical analysis and also taking a look at the market reviews. In other words, we want to see where the current position on some of these markets are. But as always, this is simply for information and educational purposes only.

We will take a look at technical analysis but using it in a very simple aspect. We don't want to over-complicate things.

So take a look at this chart over here. What is the first thing that you see? In other words, what's the most obvious information that you have? Clearly, we can see that this market has been in an uptrend and recently we saw a pullback towards the downside, but again, the market has started to head higher.

This chart here is chart of gold, so the $1,577 was the high and the $1,462 was the low and those are the key lines in the sand. That's really where gold needs to break above or below, but we saw an attempt to break the low of $1,462 at point two.

So we saw a high at one and then a low at two, but that two was higher than $1,462 which was suggesting that we should start seeing a move towards the upside. We broke above the high at one and that's clearly defined that this market should now be back in the uptrend mode. We've obviously got to take out the $1,577 high.

Now if we add some further information, the parabolic indicators are always useful. We recently saw a break above the $1,519 area and that would have indicated that we should have put a buy position on and that's worked out quite nicely.

So there has been some fairly good simple clues for us to look at this market and say we want to climb on board. This market is in a bullish trend. We're waiting for a parabolic break, which has actually taken place and that would have provided us with a nice entry.

Now of course the candlesticks, we had a spinning top at the bottom just above the prior low, so that would have also helped us to take another position less than where the parabolic break was but of course, you will have taken the break off the candlestick high and that would have given you a really nice entry there and then a secondary would have been the parabolic break to the upside.

So again, using candlesticks, using parabolic breaks, even if you use moving averages, this market still looks like it is going to be in an uptrend, so I'm expecting this market to take out the recent high.

On the daily charts, if we take a look at the parabolic break, that had taken the break out at $1,409. Now we've got to watch the parabolic support which has come in at $1,472. If, on a daily chart, the $1,472 is taken out, we would then wait for a further re-entry on a daily chart as long as the weekly chart still maintains an uptrend.

So the gold charts are looking very interesting and we'll certainly keep an eye on this over the next few weeks and if we've, as we've discussed in a previous video episode, if the FTSE 100 and some of the indices start falling off, people may be flocking towards the gold commodity once again for a safe haven. So let's keep an eye on these charts over the next few weeks.

But as always, use a top down approach. Use the longer term charts for your trend analysis and use the short-term charts such as the daily or even your four hourly and hourly charts for your entries and exits and try to keep this clutter-free. You've noticed that I haven't added too many technical indicators on there and of course, always use stop loss to protect your capital.

Well, in the meantime, have a great and a safe trading week. I look forward to seeing you in the next lesson. This is Sandy Jadeja for CantosCharts Masterclass.