It is relevant to buy metals in the local up-trends

WTI

In the longer timeframe, oil price has retested the broken out zone of TZ 4 [64.39 – 64.08] and is down at the levels of the week’s start. The middle-term trend is downward, but I suggest buying after there is a corresponding reversal pattern.

The local trend is downward. The major sell target is Target Zone 2 [61.79 – 61.48]; the sellers have already achieved the first target – Monday’s low has been reached.

The oil price went down from the key resistance [64.22 – 64.07], therefore, if the price returns up in the zone and breaks it out, the local trend will reverse upwards, and we shall look for purchases up to the upper Target Zone [65.93 – 65.62].

If the oil price breaks through the yesterday's low, the resistance zones must be rearranged.

 

WTI trading tips for today:

Don’t close a part of sell positions in Intermediary Zone [64.22 – 64.07]. TakeProfit: Target Zone 2 [61.79 – 61.48]. StopLoss: at breakeven.


XAUUSD

Gold price has been up again above the broken out resistance Target Zone 2 [1228.6 – 1225.2]. It is relevant to look for middle-term buy positions with a target in Target Zone 3 [1262.6 – 1259.2].

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

The second zone to look for purchases is the key support [1220.4 – 1218.7].

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

I don’t yet see any signals to buy or sell.

The local short-term silver trend is upward. Yesterday, the silver price broke through Additional Zone [14.73 – 14.71] in the correctional momentum, but it didn’t reach the key support.

Today, in case the zone of [14.55 – 14.52] is tested, I recommend you to focus on looking for a buy signal with a target to break through Friday’s high and reach Target Zone [15.02 – 14.95].

If Intermediary Zone is broken out from above with consolidation below, the trend will reverse downwards, and the target will be the lower TZ [14.19 – 14.12].

 

XAGUSD trading tips for today:

Buy according to the pattern in the zone of [14.63 – 14.52]. 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 06.11.2018

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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