The Dow, Gold and Oil: 3 Assets Which Could Show Extreme Moves in 2019

The Dow, Gold and Oil: 3 Assets Which Could Show Extreme Moves in 2019

If you thinking about trading in 2019, or looking for some top tips for pairs, this artilce my be just what you're looking for.

 

The Dow Halves

 

Yes, the US economy may be ‘cooking’, but something is wrong. The Dow Jones Stock Index has dropped over 9.0% from its October high and some analysts think this is just the beginning. Perma bears see it losing circa 50% and ending up in the 15,000 - 18,000 region.

 

The cause: a contraction of credit. Quite why, nobody knows, but any seismic shock which might scare the bejesus out of markets would do to cause a sudden tightening. A major bank or country defaulting, for example.

 

The Dow, which is an average of the 30 largest stocks in the US, has been forming what could be an ominous (H&S) topping pattern over the last year and if it breaks lower, below, say 23,000, it will be a very bearish sign. Judging from the charts it could do so as soon as the start of the year. This suggests a messy start for 2019.

Gold Surges

 

When investors become fearful during a crisis, for example, they take a trip to somewhere safe called ‘El Dorado’ a.k.a ‘gold’. If US stocks really to go downhill, therefore, as suggested above a major beneficiary could be the yellow metal. Statistics bear out the fact, with gold rising during most of the stock market crashes of the 21st century.

 

How high could it go? An initial rise to a historic ceiling at 1360-70s could be followed by a breakout all the way up to the 1790s if investors get really ‘spooked’.

 

Oil Drills Itself a Hole

 

Oil peaked at the start of October and then imploded, falling over 10.0% from its highs. The commodity has even lower to go, according to some analysts, who see the recent rise in US supply, from the growing shale oil fields, as more than offsetting rising global demand.

 

Ellioticians - those who study the weird and wonderful world of cycles - also see the commodity plunging in 2019 as it enters a long, strong wave 3 down, targeting the old $26 per barrel lows and possibly even surpassing them.

For more big FX News, check out our home page daily. If you already have an account with Exness, prepare for these big movers in 2019. If you're not set up to trade yet, follow the step by step guide below, open up the demo account and check the charts, then verify your account and be ready to trade.

 

SET UP AN EXNESS ACCOUNT HERE

Your 4-step guide to opening a trading account

 

Step 1: Getting registered

It's very easy to open an account with Exness. Click here to open the sign-up page in a new tab. If you want to get everything done in the next 10 minutes, be sure to have a credit card, ID, and, proof of address by your side. You can choose to open a demo account without these things. Either way, everything you need to know is here in this two-minute video. Pause the movie as you go through the first three steps.

Tip: Account type depends on the amount you wish to deposit. Leverage is effectively an interest-free loan that the broker offers. It allows you to make a large investment from a small deposit. If you are looking for high profit with high risk, a higher leverage might be right for you. If you prefer slow-burning safety with lower results, then keep your leverage low. You can never lose more than you have, but higher leverage means faster results... both good and bad.

Step 2: Prove who you are

Exness takes security very seriously, and they check every client signing up. Just like opening a bank account, you'll need to prove who you are before getting access to the global markets. Watch this one-minute video to see how.

Tip: While you're waiting for your real account to be approved, open up a demo account and start getting to know the trading platform.

 

Step 3: how to get access to the market

Trades are made using the award-winning MT4 trading platform. Inside the box of the demo or real account you'll see a gear cog. Click the gear cog to make a deposit. Use the passwords provided in the email. Click the gear cog again and select SIGN IN TO MT4 WEBTERMINAL then follow this one-minute video. You're about to make your first virtual trade on the real markets.

 

Step 4: making a trade

As a default, the top currency pair on the list will have an open chart. Right click on the chart and select the “close” option.

As a professional trader, selecting the right pair requires some research. For a first-time test, any pair will be sufficient. Drag a pair from the list of currencies on the left side of the trading terminal. The old saying goes, “what goes up, must come down.” Obviously, this principle goes the other way too. Your mission is to find a moment when the price direction is going to swing or reverse. If you feel the price is about to go up (bullish), then BUY, if it looks like it’s been trading high and the price has started a downward (bearish) trend, then SELL.

There are many ways to open your trade. You can select from the buy and sell options on the top left of the chart. Preferably, double-click the currency pair on the list. Right click on the chart when you’re ready to make your first trade. Time to set the volume depending on how confident you are in the direction you are forecasting. This is the perfect time to set your stop loss and take profit. Click the arrow to the right of the stop loss and take profit prices.

Note how the blue and dark red lines in the popup graph sit above and below the buy(ask) and sell(bid) price. In the example, we traded long (buy) and got a message confirming the order was successful. If you get an error, your volume was too high for your balance, or your stop loss/take profit was too close to the spread. Remember, every order starts as a negative because of the spread. Be patient. Your take profit will activate when the time is right, and your stop loss is protecting you. To close an order, you have three options. Click the X on the right or right-click the order. If you double click the order, you can close or modify the order.

Congratulations! You now know how to make a trade. Forex trading can be an exciting way to spend your free time, and you'll actually learn some real-world skills that will serve you well throughout your lifetime. Be patient, learn, and who knows, you might one day be one of the lucky few full-time traders. How will you spend your day?

 

Didn't start yet?

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This article is a marketing communication and does not constitute investment advice or research. Its content represents the general views of our experts and does not consider individual readers’ personal circumstances, investment experience, or current financial situation. This article is not prepared in accordance with legal requirements promoting independent investment research, and Exness is not subject to any prohibition on dealing before the release of the article. Readers should consider the possibility that they may incur losses. Therefore, Exness is not liable for any losses incurred due to the use of its articles. Please note that past performance of an asset is not a reliable indicator of future results.