Expect a correction for metals to sell at good prices

USCrude

Oil price is being corrected down 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.

The short-term trend is still downward. Traders retested the key resistance, Intermediary Zone [56.87 – 56.68], yesterday. They couldn’t break the zone out, there was a false breakout of the prior daily high.

Remember, the major sell target is Target Zone [53.56 – 53.17]. Therefore, there are two scenarios to sell. The first, aggressive scenario, was worked out yesterday after the false breakout pattern had been formed. The second scenario is conservative, to work it out, sellers need to break out the local support at [55.48 – 55.27]. In the second case, look for the entry on the pullback.

 

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.


XAUUSD

Gold is trading in the middle-term downtrend. The gold price was approaching Target Zone 2 [1278.7 – 1275.3], but the support wasn’t tested. The instrument may be corrected up from the current level, so, this week, it is relevant to sell at good prices.

In the shorter timeframe, the correction has already started, and the price is now approaching Additional Zone [1290.5 – 1289.6], the strong daily resistance. After the zone is reached, I recommend looking for sales according to the pattern, targeting the local low and Target Zone 2 [1278.7 – 1275.3].

The second zone to look for new sales is the key resistance of the short-term downtrend. In this zone, also look for a confirmation, like a pattern, and sell. Targets are the same.

 

XAUUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [1290.5 – 1289.6]. TakeProfit: 1281.4, Target Zone 2 [1278.7 – 1275.3]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1299.8 – 1298.1]. TakeProfit: 1281.4, Target Zone 2 [1278.7 – 1275.3]. StopLoss: according to the pattern rules.

XAGUSD

Silver price stopped half way to Target Zone 2 [14.77 – 14.70]. The middle-term trend is still downward, but, to sell at good prices, we need a correction. I suggest trading the pattern and selling the instrument down from the resistance [15.84 – 15.76].

Sellers failed to break out the strong support Gold Zone [15.13 – 15.09]. A local correction may start now; its first target will be Additional Zone [15.24 – 15.22]. If the resistance is tested, I suggest looking for a sell pattern with a target to update yesterday’s high.

The second target to look for sales in the trend is Intermediary Zone [15.44 – 15.40]. It is the key resistance of the trend; therefore, if it is reached by the price, look for sell entries first of all.

If IZ is broken out, we shall reverse and look for purchases with a target in the upper Target Zone [15.84 – 15.76].

 

XAGUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [15.24 – 15.22]. TakeProfit: 15.05. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [15.44 – 15.40]. TakeProfit: 15.05. 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 06.03.2019

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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