Gold price broke out and consolidated below February’s low, painting a sell pattern in middle-term timeframe

USCrude

The first target for middle-term purchases for last week was reached on Friday, the local high was broken through. The price is currently being corrected and again is approaching the support level at [54.98 – 54.59]. I don’t recommend buying at this level again. In my opinion, you’d better expect the key support test and look for purchases there. Targets will be the new high + Target Zone 4 [58.88 – 54.49].

The short-term downtrend continues, despite that the price has moved far from Intermediary Zone [56.87 – 56.68]. There is a sell pattern, but to be more confident in short entries, you’d better expect the breakout of the local support [54.48 – 54.27]. If it is broken out, the price will go down to the lower TZ [53.56 – 53.17].

Alternative scenario to buy: the US session closes above level 56.87. If so, we should look for long trades with a target at the upper Target Zone [59.02 – 58.63].

USCrude trading tips for today:

Sell according to the pattern in Intermediary Zone [56.87 – 56.68]. TakeProfit: 54.75, Target Zone [53.56 – 53.17]. StopLoss: according to the pattern rules.


XAUUSD

Gold price broke out and consolidated below February’s low, having painted a sell pattern in the middle-term timeframe. The middle-term trend reversed downwards. Now, I suggest looking for sells down to Target Zone 2 [1278.7 – 1275.3].

At the US session, another target in the short-term downtrend was reached on Friday, gold price reached Gold Zone [1295.7 – 1294.0]. As the zone hasn’t been broken out, it is the strong support in the way of the further decline.

A local correction can well start at the current levels. And the correction is a good opportunity for traders, trading with the trend, to look for new trades at good prices.

According to margin zones, good sell prices are in Additional Zone [1299.5 – 1288.7] and Intermediary Zone [1308.9 – 1307.2].

XAUUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [1299.5 – 1288.7]. TakeProfit: 1290.3. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1308.9 – 1307.2]. TakeProfit: 1290.3. StopLoss: according to the pattern rules.

XAGUSD

Silver price, like gold, also dropped down. As a result, the key support to the trend [15.49 – 15.42] was broken out. If the breakout is confirmed at the US session today and the price is closed below the level, starting form tomorrow, we shall look for middle-term sales down to TZ 2 [14.77 – 14.70].

Let’s see the local trend in the shorter timeframe. It is downward. On Friday, traders broke through TZ and drew the price down to Gold Zone [15.13 – 15.09]. For the further decline, they need to break through the support; otherwise, a correction may develop.

If the price is corrected up, the strong resistances will be AZ [15.34 – 15.32] and IZ [15.54 – 15.50]. After the zones are reached, look for a sell pattern. If there is a pattern, sell silver. Friday’s low may be set as a target meanwhile.

XAGUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [15.34 – 15.32]. TakeProfit: 15.14. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [15.54 – 15.50]. TakeProfit: 15.14. 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 04.03.2019

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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