Oil price is being corrected in the middle-term

WTI

Oil price is being corrected in the middle-term. Oil quotes dropped yesterday; the downward target is likely to be the test of margin zone [68.05 – 67.74]. After oil price reaches the zone, I recommend looking for new purchases in the trend with the target to renew the local high.

The short-term trend reversed downwards yesterday as the U.S. session closed below. For today, look for sells with a target in the lower Target Zone [68.05 – 67.74].

I recommend looking for sells in the correction towards either towards Additional Zone [69.75 – 69.57] or towards Intermediary Zone [70.60 – 70.45]. You can put a sell limit in the first zone, and I suggest looking a reversal pattern in IZ.

WTI trading tips for today:

  1. Sell according to the pattern in Additional Zone [69.75 – 69.57]. TakeProfit: 68.92, Target Zone [68.05 – 67.74]. StopLoss: 70.10.
  2. Sell according to the pattern in Intermediary Zone [70.60 – 70.45]. TakeProfit: 68.92, Target Zone [68.05 – 67.74]. StopLoss: according to the pattern rules.

XAUUSD

Gold is now trading in the zone of good prices to buy in the trend [1194.3 – 1180.2]. Look confirming signals for opening a position in the shorter timeframes.

The local trend reversed downwards yesterday as Intermediary Zone [1194.3 – 1180.2] was broken out with consolidation above. It is relevant to sell now down to the lower Target Zone [1183.3 – 1180.2].

Look for short trades after the strong resistances are tested. These resistances are AZ and IZ. The latter is in the range of [1206.7 – 1205.1], it is the key resistance.

It is relevant to look for middle-term positions only after the pattern in the shorter timeframe is worked out, or if the trend reverses upwards.

XAUUSD trading tips for today:

  1. Sell in Additional Zone [1198.2 – 1197.4]. TakeProfit: 1190.0, Target Zone [1183.3 – 1180.2]. StopLoss: 1205.
  2. Sell according to the pattern in Intermediary Zone [1206.7 – 1205.1]. TakeProfit: 1190.0, Target Zone [1183.3 – 1180.2]. StopLoss: according to the pattern rules

XAGUSD

Silver price broke out Target Zone 4 [14.39 – 14.31], though it hasn’t consolidated. So, I don’t recommend Target Zone 5 [13.67 – 13.59] as the main sell target.

In any case, the trend is downward, so look for sell trades n the correction. The local low is the first target.

The short-term momentum is downward. Target Zone [14.23 – 14.16] was reached yesterday. After that, the zone was broken out and the U.S. session closed below; and so, the next sell target is Gold Zone [13.87 – 13.83].

I recommend looking for short trades according to the patterns in the shorter timeframes after the strong resistances, Additional Zone and Intermediary Zone, are tested. The first target will be at the yesterday’s low.

XAGUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [14.16 – 14.14]. TakeProfit: 13.97, Gold Zone [13.87 – 13.83]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [14.35 – 14.32]. TakeProfit: 13.97, Gold Zone [13.87 – 13.83]. 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.

Did you like my post? Share it on the social networks; it would be the best thanks :)

Write your questions and comments below. I will be pleased to answer and explain.

Useful links:

  • I recommend trying to trade with a reliable broker here. The system allows you to trade by yourself or copy successful traders from all across the globe.

  • Telegram channel with high-quality analytics, Forex reviews, training articles, and other useful things for traders http://t.me/liteforex

 

    Price chart of USCrude in real time mode

    Analysis for oil, gold and silver for 05.09.2018

    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.

    Need to ask the author a question? Please, use the Comments section below. .
    Start Trading
    Follow us in social networks!
    Live Chat
    Leave feedback