Metals middle-term trends reversed
Oil price is being corrected in the middle-term uptrend. If the key support [53.34 – 52.91] is tested, I recommend considering purchases according to the pattern with a target to update the local high.
Oil is trading down in the short term. The price is currently trading between the key resistance [56.87 – 56.68] and the local support [55.48 – 55.27]. I recommend selling is the support is broken out and the price is consolidated below the Friday’s low. For sells, the downside target is Target Zone [53.56 – 53.17].
Alternative scenario: the resistance breakout and consolidation above at the US session. If so, starting from the next trading day, we shall look for purchases in the correction with a target at the upper TZ [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.
Gold price broke out the key support and consolidated below. Now, the middle-term trend has reversed downwards. Sell target is Target Zone 2 [1278.7 – 1275.3]. Expect the correction for good sell prices.
Gold Zone [1295.7 – 1294.0] was broken out in the short-term downtrend yesterday. The next sell target is Target Zone 2 [1278.7 – 1275.3]. Look for sales in the correction towards the strong resistances, which are Additional Zone [1292.2 – 1291.3] and Intermediary Zone [1301.5 – 1299.8].
To be able to buy the precious metal, buyers need to break through the key resistance and consolidate above. If it occurs, the main target will be the upper Target Zone [1320.2 – 1316.8].
XAUUSD trading tips for today:
- Sell according to the pattern in Additional Zone [1292.2 – 1293]. TakeProfit: 1283.0, Target Zone 2 [1278.7 – 1275.3]. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [1301.5 – 1299.8]. TakeProfit: 1283.0, Target Zone 2 [1278.7 – 1275.3]. StopLoss: according to the pattern rules.
For silver, the market sentiment is the same as for gold: the middle-term trend reversed downwards. Now, the target for short trades is Target Zone 2 [14.77 – 14.70]. There is a clear double bottom pattern in the middle-term timeframe.
Sellers were trying to break the strong support Gold Zone [15.13 – 15.09] yesterday. They failed, so there may be a correction today. In the way of the correction, there are strong resistances, where I suggest looking for new sells in the trend. These resistances are Additional and Intermediary Zone. Expect the zones test, look for a pattern and sell.
Alternative scenario to buy: If AZ is broken out, we shall trade in the correction up to IZ. If IZ is broken out with consolidation, we shall buy in the trend up to the upper Target Zone [15.85 – 15.78].
XAGUSD trading tips for today:
- Sell according to the pattern in Additional Zone [15.26 – 15.24]. TakeProfit: 15.06. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [15.45 – 15.42]. TakeProfit: 15.06. 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
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.