Oil features a clash of two trend types. Now, the price is trading in the strong resistance zone, IZ

WTI

Oil quotes are going up from the key support to the uptrend at [73.69 – 73.38]. I recommend you to look for a buy signal in the shorter timeframes.

The key resistance in the short-term downtrend is still being held. It is in the zone of [74.71 – 74.55]. As the U.S. session closed the price inside the zone yesterday, today, I suggest looking for sell trades according to the pattern with a target to renew Monday’s low and reach Gold Zone [72.14 – 71.98].

It will be relevant to buy oil if level 74.71 is broken out with consolidation above. If so, the trend will reverse upwards, and the target will be in the upper Target Zone [76.41 – 76.10].

WTI trading tips for today:

Sell according to the pattern in Intermediary Zone [74.71 – 74.55]. TakeProfit: 73.07, Gold Zone [72.14 – 71.98]. StopLoss: according to the pattern rules.


XAUUSD

Gold price is still trading in the accumulation zone. It is not so easy to break the strong downtrend.

Additional Zone [1191.9 – 1191.1] worked out yesterday: sells were entered, local low was renewed. After that, at the U.S. session, oil buyers brought the gold price back to the initial position, in particular, they tested AZ, that is now a couple of pips lower.

I don’t recommend looking for sells in this zone again. I’d rather follow the situation development and, if AZ is broken out, open buy positions in the correction.

After Intermediary Zone [1200.4 – 1198.8] is reached, we shall again start selling according to the pattern, as the zone is the key resistance of the local downtrend.

XAUUSD trading tips for today:

Sell according to the pattern in Intermediary Zone [1200.4 - 1198.8]. TakeProfit: 1183.5, Target Zone [1177.3 – 1174.2]. StopLoss: according to the pattern rules.


XAGUSD

Silver price is drawing a sell pattern in the long-term trend. Sellers are trying to break through level [14.39 – 14.31]. Expect the breakout and look for sell trades.

The local trend is downward. Yesterday, after Additional Zone [14.46 – 14.44] test, the Monday’s low was broken through; after that, silver price went back to the resistance.

I don’t suggest looking for sells at the same level for thew second time. I suggest it is possible to look for buys in the correction with a target in Intermediary Zone [14.66 – 14.62]. It will be relevant after the zone of ¼ of whole margin is broken through.

If IZ is reached by the price, it will be relevant to sell first of all, as it is the key resistance of the trend.

XAGUSD trading tips for today:

Sell according to the pattern in Intermediary Zone [14.66 – 14.62]. TakeProfit: 14.27, Target Zone [14.19 – 14.11]. 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 10.10.2018

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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