Commodities reached key resistances of local downtrends
Oil price is being corrected down in the middle-term downtrend; it is trading between the resistance Target Zone 4 [58.66 – 58.29] and the key support to the trend [53.92 – 53.55]. The resistance is an obstacle to the price rise and the supports holds the price from the further fall.
If the resistance is reached, I recommend looking for purchases according to the pattern with a target to renew last week’s high.
There have been new margin requirements for USCrude oil futures since last Friday, so the zones must be rearranged. The lower Target Zone is now at [53.92 – 53.55]. It is the main target in the local downtrend.
The key resistance [56.40 – 56.22] is being tested. In this price zone, there are the best sell prices, so you may look for a reversal pattern that will be a signal to open short positions.
If IZ is broken out upside with a consolidation, the trend will reverse upwards and we shall look for purchases up to the upper Target Zone [58.44 – 58.07].
USCrude trading tips for today:
Sell according to the pattern in Intermediary Zone [56.40 – 56.22]. TakeProfit: 54.42, Target Zone [53.92 – 53.55]. StopLoss: according to the pattern rules.
Gold price is being corrected. The middle-term trend is still downward. The target is Target Zone 2 [1278.7 – 1275.3]. Look for purchases between levels 1326 and 1315.
In the shorter timeframe, it is clear that the buyers reached the key resistance of the short-term downtrend. Its borders are [1299.6 – 1297.9] If there is a reversal pattern, you may take this opportunity and sell the metal at the lows renewal.
If the bears don’t feature a response to the zone, or it is weak, the resistance will be broken through. In this case, expect the consolidation above at the US session, and buy gold with a target in the upper Target Zone [1318.3 – 1414.9] the next day.
XAUUSD trading tips for today:
Sell according to the pattern in Intermediary Zone [1299.6 – 1297.9]. TakeProfit: 1281.5, Target Zone 2 [1278.7 – 1275.3]. StopLoss: according to the pattern rules.
Silver is also trading down. The target is Target Zone 2 [14.77 – 14.70]. The double top pattern is currently being worked out in the chart. The instrument is being corrected, and, after the strong resistance zones are reached, it will be relevant to sell.
Let’s see the short-term trend. It is still downward. The price rise on Friday is nothing more than a correction, since the price stopped in Intermediary Zone [15.37 – 15.33]. Now, it is the best time to sell, or at least to look for sells. The target is Target Zone 2 [14.77 – 14.70], as was broken out on Thursday.
Alternative scenario: key resistance breakout and consolidation above. If so, the trend will reverse upwards, and we shall look for purchases up to the upper Target Zone [15.77 – 15.69].
XAGUSD trading tips for today:
Sell in Intermediary Zone [15.37 – 15.33]. TakeProfit: 15.00. StopLoss: 15.50.
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
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