Oil price tested the key resistance IZ twice but hasn’t broken through the lows...

WTI

Oil is still trading in the middle-term down trend. Sell target is Target Zone 4 [64.39 – 64.08].

The short-term trend is also downward. But the gold price has stopped in Gold Zone 3 [65.94 – 65.78]. It was followed by the local correction, another try to break through GZ3 and the return to the key resistance.

In the current situation I don’t recommend entering sells again in Intermediary Zone [67.47 – 67.31]. As it is Friday today, so it is better to exit the trades.

If the low is broken through, the resistance zone should be rearranged and we will add new sales next week. If IZ is broken out with consolidation above, the local trend will reverse upwards.

WTI trading tips for today:

Avoid entering any trades


XAUUSD

Gold buyers consolidated above Target Zone 2 [1225.3 – 1222.2]. The next growth target is Target Zone 3 [1262.6 – 1259.2]. I recommend looking for purchases in the key support zone [1205.8 – 1202.4].

It is clear in the short-term chart that the price is not rising above Gold Zone [1233.0 – 1231.3]. If buyers manage to break the zone through, the target will be in Target Zone 2 [1251.7 – 1248.3].

Otherwise, there will be a deeper correction towards the trend key support [1222.8 – 1221.1]. I recommend looking for new sales in the trend there.

XAUUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [1222.8 – 1221.1]. TakeProfit: 1239.6, Target Zone 2 [1251.7 – 1248.3]. StopLoss: according to the pattern rules.


XAGUSD

Silver is trading down in the middle-term.

The local trend is upward. According to trading recommendations, there are purchases opened. Hold on the buy positions with the first take profit at the high of October 16, the second one is in Target Zone [15.03 – 14.95].

If the position is closed with stop loss and Intermediary Zone [14.48 – 14.44] is reached, we shall sell until the zone is broken through.

It will be relevant to sell if the zone is broken through and the US session consolidates below 14.44

XAGUSD trading tips for today:

Hold on purchases at 14.66. TakeProfit: 14.84, Target Zone [15.03 – 14.95]. StopLoss: 14.58.

 

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 10/26/2018

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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