It is relevant to buy metals in the short term

WTI

Sellers consolidated belowTarget Zone 4 [64.39 – 64.08] last week. The next target in the middle-term downtrend is TZ 5 [61.29 – 60.98].

Let’s analyze the short-term downtrend.

The price dropped down and broke through Gold Zone [63.34 – 63.18], so, the next target is Target Zone 2 [61.79 – 61.48]. It is relevant to look for sales during the correction towards the resistance at [64.22 – 64.07].

Buying won’t be relevant until a reverse pattern emerges in the longer timeframe, or until Intermediary Zone is broken out with consolidation above.

WTI trading tips for today:

Sell according to the pattern in Intermediary Zone [64.22 – 64.07]. TakeProfit: 62.63, Target Zone 2 [61.79 – 61.48]. StopLoss: according to the pattern rules.


XAUUSD

Gold price was being corrected towards Target Zone [1209.4 – 1206.0] last week. The price closely approached the support and returned above TZ 2 [1228.6 – 1225.2] at the end of the session. It means that the trend is quite strong, and one should detail the purchases in the shorter timeframe.

The local trend is upward, it is proven by the broken out margin zone [1230.7 – 1229.0]. The buy target is same as it was last week, Target Zone [1249.4 – 1246.0]. For today, Monday, I suggest holding on the opened purchases with a stop loss at 1223.6, or enter new ones at 1230.7.

There are no reasons to sell, so I will consider an alternative scenario when the traders reverse the local trend downwards.

XAUUSD trading tips for today:

  1. Buy/don’t exit purchases in Intermediary Zone [1230.7 – 1229.0]. TakeProfit: 1237.1, Target Zone [1249.4 – 1246.0]. StopLoss: 1223.6.
  2. Buy according to the pattern in Intermediary Zone [1220.4 – 1218.7]. TakeProfit: 1237.1, Target Zone [1249.4 – 1246.0]. StopLoss: according to the pattern rules.

XAGUSD

Last trading week closed inside the key resistance zone to the middle-term downtrend, [14.68 – 14.61]. Buyers have been trying to break it out for over a month already, they haven’t yet succeeded. There are neither buy signals nor sell ones in the middle term.

The short-term trend is upward. The buy target is Target Zone [15.02 – 14.95]. Amid the news on Friday, the price rebounded from Additional Zone [14.64 – 14.62] and broke through the local high; currently, silver price is being corrected after the recent rise.

At the moment, sellers are testing the strong support at [14.73 – 14.71]. Depending on whether it is held or broken, there will be either the high renewal, or Intermediary Zone [14.55 – 14.51] test. I suggest looking buy signals carefully at the current levels.

XAGUSD trading tips for today:

  1. Buy according to the pattern in Additional Zone [14.73 – 14.71]. TakeProfit: 14.91, Target Zone [15.02 – 14.95]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [14.55 – 14.51]. TakeProfit: 14.91, Target Zone [15.02 – 14.95]. 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

Analysis for oil, gold and silver for 05.11.2018

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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