Traders in metals forming accumulation zone on long time-frames. What’s next?
The priority on a big time-frame is downward. Sellers’ goal is to update July’s low and test Target Zone 3 [63.80 – 63.46].
A short-term trend changed into an uptrend as the American session closed above Intermediary Zone [68.21 – 68.03] yesterday. Now, the target is the upper Target Zone [70.10 – 69.76].
Correction of strong resistance levels - Additional Zone [68.29 – 68.20] and Intermediary Zone [67.43 – 67.25] - will be a signal to buy. Remember that news on oil reserves will be released during the American session today.
For selling, trades should be closed below the key resistance of 67.25.
WTI Trading decisions for today:
- Buy according to the pattern from Additional Zone [68.29 – 68.20]. TakeProfit: Target Zone [70.10 – 69.76]. StopLoss: According to pattern rules
- Buy according to the pattern from Intermediary Zone [67.43 – 67.25]. TakeProfit: Target Zone [70.10 – 69.76]. StopLoss: According to pattern rules
Buyers don’t let the price drop below Target Zone 5 [1210.2 – 1207.1], but the downtrend continues. Wait for profitable prices to sell in the zone of TZ [1238.6 – 1235.5], look for a pattern and then sell.
On a shorter time-frame, gold continues trading downwards, but I wouldn’t recommend selling at current prices. If Intermediary Zone [1221.6 – 1220.0] is tested again, we should again search for a pattern to sell.
If there’s a breakout and closure above IZ, we’ll switch to buying. Under this scenario, a short-term trend will change into an uptrend with a target at [1238.6 – 1235.5] (upper Target Zone).
XAUUSD Trading decisions for today:
Sell according to the pattern from Intermediary Zone [1221.6 – 1220.0]. TakeProfit: Target Zone [1204.2 – 1201.1]. StopLoss: According to pattern rules
A medium-term accumulation zone is forming for silver between Target Zone 3 [15.11 – 15.03] and Resistance [15.92 – 15.85]. If the price grows and reaches the resistance level, I recommend looking for a pattern to sell.
The short-term trend has been upward since 25 July. The BUY target is in the Target Zone [15.92 – 15.85].
The quotes are rolling back now, growing after a test of the key resistance at [15.26 – 15.22]. For today, I recommend holding long positions, pulling Stop Loss beyond the nearest extremums.
Sell silver if Intermediary Zone has been broken out. In this case, the priority model won’t prove to be right and the lower TZ will be a new target.
XAGUSD Trading decisions for today:
Hold long positions from Intermediary Zone [15.26 – 15.22]. TakeProfit: 15.61, Target Zone [15.92 – 15.85]. StopLoss: 15.23.
IZ - Intermediary Zone - Reflects changes in priority directions of price movements
TZ - Target Zone - The zone which will be reached with a 75% chance once IZ has been broken through.
GZ - Gold Zone - The zone in a medium-term impetus
All the zones are calculated based on a daily average movement and margin requirements of the futures market.
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Price chart of XAUUSD in real time mode
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