Oil short-term trend reversed upwards. I suggest looking for purchases up to Target Zone [69.18 – 68.87]

WTI

Oil price is being corrected in the middle-term downtrend. Currently, the price is testing the strong support at [67.49 – 67.18]; however, the best sell prices are in Target Zone [69.18 – 68.87].

Let’s study the situation in the short-term timeframe.

Traders broke out and consolidated above Intermediary Zone [67.47 – 67.32] on Friday. The local trend reversed upwards.

For today, I recommend looking for purchases both in the broken out IZ, and in the new, correctional one, at [66.44 – 66.28]. Buy target will be the local high and Target Zone [69.18 – 68.87].

WTI trading tips for today:

  1. Buy according to the pattern in Intermediary Zone [67.47 – 67.32]. TakeProfit: 67.95, Target Zone [69.18 – 68.87]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [66.44 – 66.28]. TakeProfit: 67.95, Target Zone [69.18 – 68.87]. StopLoss: according to the pattern rules.

XAUUSD

Last Friday, gold traders marked another high, where from we can arrange the key support zone to the middle-term uptrend. It is in the range of [1209.4 – 1206.0]. The strong support is also the broken out TZ 2 [1228.6 – 1225.2]. I suggest looking for buys from these two margin zones. A part of profits can be taken at 1243.1, the major target is TZ 3 [1262.6 – 1259.2].

The short-term trend is also upwards. However, buyers haven’t broken out Gold Zone [1233.0 – 1231.3] or consolidated above.

Therefore, you’d better look for a reversal pattern to buy in Gold Zone [1233.0 – 1231.3]. If there is a buy signal, the first target will be the local high, and the second one is in the zone of [1251.7 – 1248.3].

Alternative scenario: sell gold down to TZ [1209.4 – 1206.0]. It will be relevant if the key support is broken out and the price is consolidated below at the U.S. session.

XAUUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [1226.4 – 1224.7]. TakeProfit: 1243.3, Target Zone 2 [1251.7 – 1248.3]. StopLoss: according to the pattern rules.

 


XAGUSD

Sliver is still trading down in the middle-term. Selling will be available if there is a pattern/signal.

Trading idea to buy at Fibonacci 50% hasn’t worked out. I don’t recommend entering at this level again.

The short-term trend is upward as long as the key support at [14.48 – 14.44] is held. To enter longs, we need a new pattern/ signal. Until it appears, I suggest expecting.

XAGUSD trading tips for today:

Don’t enter any trades, expect a new buy signal in Intermediary Zone [14.48 – 14.44].

 

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 10/29/2018

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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