Traders have been accumulating metal positions since last week. The finish is close

WTI

Oil price broke out the middle-term support Target Zone 3 [65.39 – 65.14], but it hasn’t been consolidated below. If the US session closes below the zone today, TZ 4 is likely to be reached, it is bordered by the levels of [62.84 – 62.59].

In the shorter timeframe we see that Target Zone [66.07 – 65.81] was broken out and Gold Zone [64.79 – 64.67] was reached. The trend is downward, so any price moves up, including the resistance at [65.93 – 65.81], should be treated as a correction.

I recommend selling the instrument according to the pattern either from Additional Zone [65.23 – 65.17] or from IZ. The target is renewal of the local low.

We won’t consider buying until the US session closes above level 65.93.

Today's trading tips for WTI:

  1. Sell according to the pattern in Additional Zone [65.23 – 65.17]. TakeProfit: 64.60, Target Zone 2 [63.52 – 63.26]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [65.93 – 65.81]. TakeProfit: 64.60, Target Zone 2 [63.52 – 63.26]. 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].

Buyers are holding up the key support to the short-term uptrend at [1292.3 – 1290.7]. As long as the zone is held, we, of course, are looking for purchases aiming at reaching Target Zone [1316.2 – 1313.1].

For now, I yet see no reversal patterns in the price chart to buy the metal.

Until the US session consolidates the price below Intermediary Zone, it is too early to sell. So, I recommend waiting and being prepared to primarily buy.

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.

The local trend remains upward. Traders have been testing the key support at [16.30 – 16.27] since last week, failing to break it through. Based on this, I recommend holding on purchases up to Target Zone [16.93 – 16.85].

In the opposite case, we’ll get StopLoss for longs, wait until IZ is broken out, and will start selling the next trading day. Sell target will be the lower TZ [15.94 – 15.87].

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.

Analysis for oil, gold and silver for 05.06.2018

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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