Oil traders are trying to consolidate above key resistance of the middle-term downtrend

WTI

Oil buyers are trying to break out the key resistance of the middle-term downtrend at [52.98 – 52.57]. If they manage to consolidate above the zone, buy target will be Target Zone 2 [57.08 – 56.67]. Otherwise, the downtrend will continue and the target will be in Target Zone 9 [47.89 – 47.48].

Let’s analyze the short-term chart of the local trend.

The short-term trend is upward. Yesterday, traders were trying to consolidate above Target Zone [52.98 – 52.57], but the U.S. session closed the price inside the zone. In addition, Additional Zone [52.71 – 52.61] was tested yesterday. Oil price increased and is now trading close to the local highs.

The growth target for today is level 53.71. It is relevant to look for buys according to the pattern in the correction towards support zones.

WTI trading tips for today:

  1. Buy according to the pattern in Additional Zone [52.71 – 52.61]. TakeProfit: 53.69. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [51.69 – 51.48]. TakeProfit: 53.69. StopLoss: according to the pattern rules.

XAUUSD

Gold price is breaking out the key resistance of the middle-term downtrend [1333.7 – 1230.3]. If buyers consolidate above the zone, we shall buy Gold with a target in Target Zone 2 [1267.7 – 1264.3].

The short-term uptrend continues. Currently, traders are trying to consolidate above Target Zone [1233.7 – 1230.3]. If the U.S. session confirms the breakout, the next buy target will be Gold Zone [1249.0 – 1247.3].

Good buy prices are in the strong support zones, Additional Zone [1229.3 – 1228.5] and Intermediary Zone [1220.8 – 1219.1].

XAUUSD trading tips for today:

  1. Buy according to the pattern in Additional Zone [1229.3 – 1228.5]. TakeProfit: 1237.6. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [1220.8 – 1219.1]. TakeProfit: 1237.6. StopLoss: according to the pattern rules.

XAGUSD

Silver is growing in price; it is approaching Target Zone [14.68 – 14.61]. It is the final target in the middle-term downtrend. I don’t recommend entering any position trades right now. I suggest expecting the trend reversal to look for buys.

In the shorter timeframe, there is emerging a Double Bottom pattern to buy. Before entering longs, expect Intermediary Zone [14.44 – 14.41] breakout and consolidation above. In this case, the target will be Target Zone [14.84 – 14.77].

If sellers hold IZ, I suggest looking for sales with the target to renew the local low and reach the lower TZ [13.83- 13.76].

XAGUSD trading tips for today:

Aggressively: Buy/hold on buys in Additional Zone [14.38 – 14.36]. TakeProfit: Target Zone [14.84 – 14.77]. StopLoss: 14.238.

 

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 USCrude in real time mode

Analysis for oil, gold and silver for 04.12.2018

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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