Oil is trading up. Look for purchases
Monday morning, oil price is being slightly corrected against the middle-term uptrend. I recommend looking for buy positions in the strong support zones this week.
Let’s look at the shorter timeframe. The trend is also upward here. The strong resistance Gold Zone [69.24 – 69.07] was broken out last week, and so, the target is now Target Zone 2 [70.76 – 70.45].
Now, oil price is being corrected; it is breaking through Additional Zone [69.50 – 69.42]. If it is true breakout, the price is likely to reach Intermediary Zone [68.73 – 68.57], where I recommend looking for buys.
If the price is back above Additional Zone and draws a reversal pattern, I recommend looking for buys according to the pattern with the first target to renew the local high.
WTI trading tips for today:
- Buy according to the pattern in Additional Zone [69.50 – 69.43]. TakeProfit: 70.27, Target Zone 2 [70.76 – 70.45]. StopLoss: according to the pattern rules.
- Buy according to the pattern in Intermediary Zone [68.73 – 68.57]. TakeProfit: 70.27, Target Zone 2 [70.76 – 70.45]. StopLoss: according to the pattern rules.
Gold price is being corrected in the uptrend. The correction target is likely to be in [1194.3 – 1180.2]. After the zone is reached, look for buys.
The short-term trend is also upward.
Last week, gold sellers were trying to break out Intermediary Zone [1198.8 – 1197.3] and consolidate below, but the zone was held. Therefore, we shall go on looking for gold purchases. Buy target is the local low + Target Zone 2 [1225.3 – 1222.2].
Long positions will be relevant if there is a corresponding pattern that will emerge after the Friday’s high is renewed and the price is consolidated above.
If IZ is broken out and the US session closes below, the local trend will reverse downwards. In this case, I recommend selling gold down to the lower Target Zone [1183.3 – 1180.2].
XAUUSD trading tips for today:
Buy according to the pattern in Intermediary Zone [1198.8 – 1197.3]. TakeProfit: 1214.0, Target Zone 2 [1225.3 – 1222.2]. StopLoss: according to the pattern rules.
Silver price has retested the strong middle-term support Target Zone 4 [14.39 – 14.31]. If the zone is held and there is a buy pattern in the shorter mainframes, you can trade in the correction – buy XAGUSD with a target in Target Zone [15.08 – 15.00].
Last Friday, silver traders had tested Additional Zone [14.66 – 14.64] and reached the first sell target, renewed the local low.
For today, I recommend expecting the retest of the strong supports, Additional Zone [14.54 – 14.52] and Intermediary Zone [14.74 – 14.70], and look for sells in the current downtrend.
Alternative scenario to buy silver will be relevant if the trend reverses upwards, after IZ breakout with consolidation above.
XAGUSD trading tips for today:
- Sell according to the pattern in Additional Zone [14.54 – 14.52]. TakeProfit: 14.35, Target Zone [14.23 – 14.16]. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [14.74 – 14.70]. TakeProfit: 14.35, Target Zone [14.23 – 14.16]. StopLoss: according to the pattern rules.
IZ - Intermediary Zone: responsible for the price momentum reversing.
TZ - Target Zone: a zone that is 75% likely to be reached after IZ breakout.
GZ - Gold Zone: zone in the medium-term momentum.
All zones are calculated based on the average daily price of the instrument and margin requirements of the futures.
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Price chart of XAUUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.