Oil price is testing the border of the short-term downtrend

Oil continues trading down in the middle-term. Sell target is this week’s low and Target Zone 4 [62.84 – 62.59].

Despite a try to break out Intermediary Zone [65.57 – 65.44], the short-term trend remains downward. If there is a clear sell pattern, I recommend going short, aiming to renew yesterday’s low and reach Target Zone 2 [63.52 – 63.26].

Alternative scenario: Buying WTI up to the upper Target Zone [66.97 – 66.72]. It will be relevant if there the key resistance breakout and consolidation above.

Today's trading tips for WTI:

Sell according to the pattern in Intermediary Zone [65.57 – 65.44]. TakeProfit: 64.25, 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].

The short-term trend is upward. The try to break out the key support failed. Currently, there is a complete buy pattern, we can use to hold on the purchases up to the upper Target Zone [1316.2 – 1313.1].

Selling gold will be relevant when the traders break through the key support and close the price below. After that, we shall sell XAUUSD targeting the lower short-term support at [1276.8 – 1273.7].

Today's trading tips for XAUUSD:

Don’t close buys/ buy 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 short-term trend is upward. Despite numerous tries to break out the key support, it was held.

For today, I recommend hold on the purchases and more ones targeting Target Zone [16.93 – 16.85].

Alternative scenario: Intermediary Zone breakout and consolidation below will reverse the trend downwards. In this case can look for sells down to 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 06.06.2018

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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