Oil is still trading down today. The next local target is Gold Zone

WTI

Oil continues trading in the middle-term downtrend. Target Zone 3 [65.39 – 65.14] was reached at the end of the US session on Friday.

For now, we shall follow how traders will treat the zone. If it is broken out, the next downward benchmark will be TZ 4 [62.84 – 62.59]. If the support is held, the correction can develop, and we will look for sells at good prices.

Let’s study the current situation.

The US session closed below Target Zone [66.07 – 65.81] on Friday. It means that the next downward target is Gold Zone [64.79 – 64.67].

I recommend looking for sell according to the pattern from the strong supports, which are AZ [66.17 – 66.11] and IZ [66.87 – 66.75]. Take profit had better be divided into two parts: the first profit is to be fixed at renewing Friday’s low; the second one should be left till the major target.

We shall buy oil when traders break out the key resistance and consolidate above. If so, the trend will reverse upwards.

Today's trading tips for WTI:

  1. Sell according to the pattern in Additional Zone [66.17 – 66.11]. TakeProfit: 65.50, Gold Zone [64.79 – 64.67]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [66.87 – 66.75]. TakeProfit: 65.50, Gold Zone [64.79 – 64.67]. StopLoss: according to the pattern rules.

XAUUSD

Gold continues falling in price in the middle-term downtrend. The decreasing target is Target Zone 3 [1272.2 – 1269.1]. The key resistance is at 1316.2 – 1313.1].

The short-term trend is upward. The local low was renewed on non-farm payrolls report, but Intermediary Zone [1292.3 – 1290.7] was not broken out.

We shall again look for purchases, aiming at Target Zone [1316.2 – 1313.1]. To buy, we need to wait until a reversal pattern emerges.

If the price continues falling down and IZ is broken out, the short-term trend will reverse downwards. In this case we should look for sells down to the lower Target Zone [1276.8 – 1273.7].

Today's trading tips for XAUUSD:

Buy according to the pattern in Intermediary Zone [1292.3 – 1290.7]. TakeProfit: Target Zone [1316.2 – 1313.1]. StopLoss: according to the pattern rules.

 


XAGUSD

Silver trend is still unclear in the long timeframe. It is better to trade and look for the entry points, based on the short-term trend.

Sellers couldn’t break through and consolidate below the key support [16.30 – 16.27] in the local uptrend. SO, we should treat the correction as an opportunity to buy the instrument at good prices.

You can also hold on the purchases, opened last week, as StopLoss is set according to the rules, beyond the support level. You can also wait for a new signal that will emerge after June 1 high is broken through.

Anyway, I don’t recommend selling silver until the US session closes below 16.27. If it occurs, the local trend will reverse downwards.

Today's trading tips for XAGUSD:

Don’t close buys/ buy in Intermediary Zone [16.30 – 16.27]. TakeProfit: Target Zone [16.93 – 16.85]. StopLoss: 16.25.

 

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.
SZ - Stop Zone: point of Stop Loss setting, selected statistically.
All zones are calculated based on the average daily price of the instrument and margin requirements of the futures.


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Analysis for oil, gold and silver for 04.06.2018

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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