Gold short-term trend can reverse upwards. Oil situation is the opposite: traders tried to break out the key support

WTI

Target Zone 4 [77.01 – 76.72], built according to the new margin requirements, was tested during yesterday’s trading session. It resulted in closing large purchases. In addition, bears featured some activity, which is clear from the shorter timeframe.

I recommend looking for new buys in the trend from the key support [70.70 – 70.41].

The short-term trend is upward. There was a try to break through the key support [72.78 – 72.14], which failed. Finally, the US session closed above the zone.

Today, I don’t recommend opening any positions, as technical analysis contradicts to margin analysis.

If traders close the session below level 72.14, we will look for sells tomorrow.

Today's trading tips for WTI:

Avoid entering any trades.


XAUUSD

Gold price is being corrected in the middle term with a possible target at the key resistance at [1272.0 – 1269.0].

According to margin zones, the short-term trend is still downward. However, the quotes are trading above the key resistance [1255.0 – 1253.4] now. It is the first signal of a possible trend reversal.

Aggressive traders receive an opportunity to buy the metal during the zone retest with a stop beyond it.

Conservative traders should wait until the price is consolidated above IZ before they start buying.

Today's trading tips for XAUUSD:

Aggressively: buy during the retest of Intermediary Zone [1255.0 – 1253.4]. TakeProfit: Target Zone [1272.0 – 1269.0]. StopLoss: 1249.0.


XAGUSD

Silver price is also being corrected in the middle-term downtrend. It rebounded from Target Zone 2 [15.83 – 15.75]; the target can be Target Zone [16.51 – 16.44] test.

Let’s study the situation in the shorter timeframe.

The local trend, like the global, is downward. The price is being corrected now, approaching the key resistance [16.12 – 16.08].

If there is a pattern to buy in the zone, I recommend selling the metal with the target to renew the local lows, recorded on Monday and Tuesday.

If IZ is broken out, the short-term trend will reverse upwards. If so, we will buy XAGUSD with the target in the upper Target Zone [16.51 – 16.44].

Today's trading tips for XAGUSD:

Sell according to the pattern in Intermediary Zone [16.12 – 16.08]. 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 04.07.2018

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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