Oil price is down, being corrected, but the middle-term trend is upward

WTI

Oil price is approaching the key support to the middle-term uptrend [68.05 – 67.74]. After it reaches the zone, I recommend looking for purchases with a target to renew this week’s high. A part of positions, if everything goes according to the plan, can be held on in Target Zone 3 [73.86 – 73.55].

Let’s analyze the local short-term trend.

Oil is trading down in the short-term. According to the trading system, there should sell positions, opened with a target in Target Zone [68.05 – 67.74]. There was an opportunity to enter sells in Additional Zone [69.34 – 69.26] yesterday.

I recommend you to close all positions in TZ and follow how oil traders will respond to the middle-term support test. If WTI price is corrected, I suggest looking for sells; if the key resistance, Intermediary Zone, is broken out, we shall buy the instrument on the next day.

WTI trading tips for today:

Hold on a part of sell positions in Additional Zone [69.34 – 69.26]. TakeProfit: Target Zone [68.05 – 67.74]. StopLoss: at breakeven.


XAUUSD

XAUUSD quotes are being corrected in the middle-term uptrend. Yesterday, the zone of good buy prices [1194.3 – 1180.2] was tested. I feel like buying gold, but there hasn’t been a buy signal, according to technical analysis.

Therefore, I suggests expecting a signal/a pattern in shorter timeframes to buy. The target is the last week’s high and Target Zone 2 [1225.3 – 1222.2].

I suggest selling for the intraday trading, as the local trend is downward. Additional Zone [1198.2 – 1197.4] has been tested at the Asian session today. According to the trading recommendations, we should have sell position opened with the targets at 1190.0 and in Target Zone [1183.3 – 1180.2].

If the instrument price is being corrected deeper towards Intermediary Zone [1206.7 – 1205.1], I recommend you to look for sells again, but according to the pattern already. The targets will be the same.

XAUUSD trading tips for today:

  1. Don’t close sell positions 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 sellers managed to consolidate below Target Zone 4 [14.39 – 14.31]. Therefore, there is the new middle-term target in Target Zone 5 [13.67 – 13.59]. I recommend looking for sell trades in the key resistance.

Let’s look at the shorter timeframe.

Target Zone [14.23 – 14.16] was broken out and the new target in the local downtrend is Gold Zone [13.87 – 13.83].

Silver price is being corrected locally and buyers are testing the strong resistance Additional Zone [14.16 – 14.14]. I recommend looking for short trades according to the pattern. The target is the local low + GZ.

If Intermediary Zone [14.35 – 14.32] is reached also suggest selling.

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.

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Price chart of USCrude in real time mode

Analysis for oil, gold and silver for 06.09.2018

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.

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