Metals are trading up in the short-term. Gold traders are trying to break through the high of October 15; silver price is about to draw 1-2-3 pattern.

WTI

WTI crude oil is trading in the middle-term downtrend. Target Zone 2 [70.59 – 70.28] was broke nout last week, and so, the next target is TZ 3 [67.49 – 67.18].

I suggest looking for sells in the correction towards the key resistance at [71.88 – 71.57].

The short-term trend is also downward. It is clear from the chart that Gold Zone [69.04 – 68.88] is broken out with consolidation below. The next target for bears is Target Zone 3 [67.49 – 67.18].

Currently, oil price is being corrected and is approaching Intermediary Zone [70.17 – 70.02]. I recommend expecting the zone test and looking for a sell pattern. A part of profits might be fixed the yesterday’s low renewal.

Alternative scenario: IZ breakout and consolidation above. If, so it will be relevant to open purchases up to the upper TZ [71.88 – 71.57].

WTI trading tips for today:

Sell according to the pattern in Intermediary Zone [70.17 – 70.02]. TakeProfit: 68.53, Target Zone 3 [67.49 – 67.18]. StopLoss: according to the pattern rules.


XAUUSD

Gold had been trading just under the middle-term resistance Target Zone 2 [1228.6 – 1225.2] during last week. The trend is upward, and so the resistance may be broken out with consolidation above in the near future. If so, the next target for bulls will be TZ 3 [1262.6 – 1259.2].

The local gold trend is upward. Gold Zone [1233.0 – 1231.3] is the resistance. Currently, the price is trading in the resistance zone, trying to break through the high of October 15.

If the high is renewed, the support zones should be rearranged.

As for trading advice, I suggest expecting the local high renewal, next, marking Additional Zone and Intermediary Zone in the chart, and, based on them, looking for more purchases in the trend.

XAUUSD trading tips for today:

  1. Don’t close purchases in Additional Zone [1222.3 – 1225]. TakeProfit: 1233.0, Target Zone 2 [1257 – 1248.3]. StopLoss: at breakeven
  2. Add more purchases in AZ and IZ after the high of October 15 broken through

XAGUSD

Silver, like, gold, had been trading under the strong resistance last week. Silver traders are trying to break through the zone for the second time. It will be broken out when two U.S. sessions close above 14.68. If so, the trend will reverse upwards, and the target will be Target Zone 2 [15.40 – 15.33].

The local short-term trend is upward, as Intermediary Zone [14.63 – 14.59] was broken out on October 15. The target for this week is Target Zone [15.03 – 14.95].

I recommend buying silver according to the pattern; it will emerge when the high of October 19 is broken through. In his case, there will be 1-2-3 pattern.

XAGUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [14.63 – 14.59]. TakeProfit: 14.84, Target Zone [15.03 – 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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Analysis for oil, gold and silver for 10/23/2018

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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