Metals continue trading down in the short term

WTI

Oil price reached another target in the middle-term uptrend, Target Zone 4 [73.82 – 73.57]. The price will grow higher if this resistance is broken out.

The key support is at [70.90 – 70.63].

The short-term trend is still upward, although oil opened wit ha price gap today. Now, oil is trding a little higher than the key support at [72.28 – 72.14]. For purchases, look for a pattern and buy with the target to renew Friday’s high.

Selling will be relevant if traders break out level 72.14 and consolidate below. After that, we will sell oil with the target in the lower Target Zone [70.90 – 70.63].

Today's trading tips for WTI:

Buy according to the pattern in Intermediary Zone [72.28 – 72.14]. TakeProfit: 73.82. StopLoss: according to the pattern rules.


XAUUSD

Gold price is approaching to the strong middle-term support [1241.2 – 1238.1]. After it reaches the zone, you’d better close most sales and be prepared to the correction.

As for the local trend, the strong resistance Additional Zone [1254.5 – 1253.7] was tested on Friday. The zone was held; and today, at the Asian session, there has emerged a pattern to sell with the target to renew last week’s low.

Therefore, I recommend waiting for either the low renewal or the key resistance test to open more sells. Intermediary Zone is between the levels [1263.0 – 1261.5].

Today's trading tips for XAUUSD:

  1. Don’t close sells in Additional Zone [1254.5 – 1253.7]. TakeProfit: Target Zone 2 [1247.3 – 1244.2]. StopLoss: at breakeven.
  2. Sell according to the pattern in Intermediary Zone [1263.0 – 1261.5]. TakeProfit: Target Zone 2 [1247.3 – 1244.2]. StopLoss: according to the pattern rules.

XAGUSD

Silver price is approaching Target Zone 2 [15.82 – 15.75]. Currently, it is the main sell target. The resistance is at [16.66 – 16.59].

The short-term silver trend is downward. Additional Zone [16.07 – 16.05] was being tested at the end of last week and today at the beginning of trading. Finally, double top pattern has emerged.

Sell target is Target Zone 2 [15.82 – 15.75]. A part of profits can be fixed at the local low renewal.

The key resistance is currently at [16.27 – 16.23]. If the zone is reached, sell silver according to the pattern.

Today's trading tips for XAGUSD:

  1. Don’t close sells in Additional Zone [16.07 – 16.05]. TakeProfit: Target Zone 2 [15.82 – 15.75]. StopLoss: at breakeven.
  2. Sell according to the pattern in Intermediary Zone [16.27 – 16.23]. TakeProfit: Target Zone 2 [15.82 – 15.75]. 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.
Analysis for oil, gold and silver for 02.07.2018

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.

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