Market: $CL_F and $GC_F
Chart Analysis: Oil vs. Gold is the topic of today’s NinjaTrader Chart of the Day. As traders search for alternative forms of investments, many turn to commodities and precious metals to hedge positions. NinjaTrader’s powerful multi-instrument charting allows traders not only to plot multiple instruments and time frames, but multiple bar types as well. The yellow area represents daily Gold Futures ($GC_F) and is a custom bar type named “Mountain” which can be downloaded for free from the NinjaTrader Support Forum. The Oil Futures ($CL_F) daily candlestick bars are overlaid, allowing traders to easily compare differences in price movement between the two instruments. As we can clearly see, both Oil and Gold reached highs in February, and subsequently corrected near the same pace. In current months, however Oil hasn’t been able to keep momentum with the quick return to highs that Gold has enjoyed.
Traders may see this as an opportunity to play the spread, buy oil cheaply, or short oil as it shows weakness. Whichever direction prices decide to go, both of these markets have experienced large price swings opening up opportunities for the short and mid-term trader. Today’s chart can be created for FREE using NinjaTrader 7 and FREE end of day data provided by Kinetick.
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