Gold price moves back from the key support to the middle-term uptrend

WTI

The strong middle-term resistance TZ 3 [73.86 – 73.55] was broken out yesterday. To consolidate the price above, the U.S. session should prove the breakout and close there. If so, the next upward target will be TZ 4 [76.96 – 76.65].

Oil price tested Additional Zone [72.86 – 72.78] in the local trend yesterday; next, oil quotes went up and reached Target Zone 2 [74.30 – 73.99] and Gold Zone 2 [75.70 – 75.54].

I suggest expecting a correction after such a rise to look for new buys. The strong support zones are the new AZ and IZ. The latter is the key support bordered by the levels of [74.11 – 73.96]. Expect the zone test and look for patterns.

WTI trading tips for today:

  1. Buy according to the pattern in Additional Zone [74.89 – 74.81]. TakeProfit: Gold Zone 2 [75.70 – 75.54]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [74.11 – 73.96]. TakeProfit: Gold Zone 2 [75.70 – 75.54]. StopLoss: according to the pattern rules.

XAUUSD

Gold traders tested the strong support at [1183.3 – 1180.2], it was held. The middle-term gold trend is upward, and so, I suggest looking for new buys according to the pattern or holding up the opened ones during this week.

Gold is trading down in the short term; however XAUUSD price is being corrected and goes gradually up. The key resistance is at [1197.7 – 1196.2]. After the zone is reached by the price, I recommend closing all the purchases, opened in the correction, and looking for sell patterns.

You could open purchases in the correction in Additional Zone [1185.9 – 1185.2] yesterday. The first target is September 28 high, the second one is Intermediary Zone. I suggest you move the trades to the breakeven.

XAUUSD trading tips for today:

  1. Hold on purchases in Additional Zone [1185.9 – 1185.2]. TakeProfit: 1193.6, Intermediary Zone [1197.7- 1196.2]. StopLoss: at breakeven.

  2. Sell according to the pattern in Intermediary Zone [1197.7- 1196.2]. TakeProfit: Target Zone [1181.7 – 1178.6]. StopLoss: according to the pattern rules.

 


XAGUSD

Silver buyers have tested Target Zone [14.68 – 14.61]. It is the key resistance of the middle-term downtrend. I suggest waiting and following the further situation. If there is a sell pattern, I recommend selling with the target to break through September low.

Silver short-term trend is upward. Yesterday, silver price was corrected to the key support and went up next.

For today, I suggest looking for buys according to the pattern with the target to break though the local high + Gold Zone [15.01 – 14.97].

If the high is broken through, the support zones must be rearranged.

XAGUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [14.35 – 14.31]. TakeProfit: 14.70, Gold Zone [15.01 – 14.97]. 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

Analysis for oil, gold and silver for 02.10.2018

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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