Oil price broke through the strong middle-term support Target Zone 3; it continues going down
Oil middle-term downtrend continues. Target Zone 3 [67.49 – 67.18] was broken out without consolidation below yesterday. To mark the next target in TZ 4 [64.39 – 64.08], the U.S. session should close the price below 67.18 for the second time.
Let’s study the local trend.
TZ 3 was broken out and Gold Zone 3 [65.94 – 65.78] was reached yesterday. The latter is the strong support.
Currently, the instrument price is being corrected below the resistance Additional Zone [66.61 – 66.54]; it is the first zone to look for new sells. The second zone is the key resistance at [67.47 – 67.31]. To go short, I suggest looking for a reversal pattern and selling with the first target at yesterday’s low.
WTI trading tips for today:
- Sell according to the pattern in Additional Zone [66.61 – 66.54]. TakeProfit: 65.80, Target Zone 4 [64.39 – 64.08]. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [67.47 – 67.31]. TakeProfit: 65.80, Target Zone 4 [64.39 – 64.08]. StopLoss: according to the pattern rules.
Gold buyers have broken through the middle-term resistance Target Zone 2 [1228.6 – 1225.2]. The U.S. session has once closed above. If it closes there for the second time, the breakout will be completely confirmed. Otherwise, there may be a deep correction.
Let’s see the short-term trend. It is obviously upward. Yesterday, the high of October 15 was renewed and Gold Zone [1233.0 – 1231.3] was tested again. I recommend closing most purchases in Additional Zone [1222.3 – 1221.5].
Currently, the new Additional Zone, built from the yesterday’s high, is being tested. It is in the zone of [1231.3 – 1230.4]. I recommend looking for a buy signal and buying with the target to break through yesterday's high.
The second zone to look for purchases is the key support to the trend at [1222.8 – 1221.1].
XAUUSD trading tips for today:
- Buy according to the pattern in Additional Zone [1222.3 – 12255]. TakeProfit: 1239.6, Target Zone 2 [1257 – 1248.3]. StopLoss: according to the pattern rules.
- Buy according to the pattern in Intermediary Zone [1228 – 1221.1]. TakeProfit: 1239.6, Target Zone 2 [1251.7 – 1248.3]. StopLoss: according to the pattern rules.
Silver traders are trying to break through the key resistance of the middle-term downtrend and reverse the trend. They haven’t yet succeeded. The zone will be broken out if two U.S. sessions close above level 14.68. Until it happens, it is still relevant to sell.
The local trend is upward. There was a buy pattern in Intermediary Zone [14.63 – 14.59] yesterday. For today, I suggest traders expect 50% correction from the momentum and buy with the first target at October 16 high and the second one in Target Zone [15.03 – 14.95].
If the stop order works out and IZ is broken out, the local trend will reverse downwards and it will be relevant to sell down to the lower Target Zone.
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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