There is an opportunity to trade gold in the correction, but the short-term downtrend continues

WTI

Oil price broke out the key support at [73.69 – 73.38]. The middle-term uptrend may reverse. If the U.S. session closes below the zone today, I suggest selling WTI with a target in Target Zone 2 [70.59 – 70.28].

The short-term trend is downward. Yesterday, there was a perfect opportunity to enter a trade according to 1-2-3 pattern. Finally, the local low was broken through and Gold Zone [72.14 – 71.98] was reached. All sell targets have been achieved.

For today, I suggest expecting a correction and looking for new opportunities to add to your sell trades. Strong resistance are currently Additional Zone [72.52 – 72.44] and Intermediary Zone [73.37 – 73.21]. The target will be today’s low.

WTI trading tips for today:

  1. Sell according to the pattern in Additional Zone [72.52 – 72.44]. TakeProfit: 72.74, Target Zone 2 [70.59 – 70.28]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [73.37 – 73.21]. TakeProfit: 774, Target Zone 2 [70.59 – 70.28]. StopLoss: according to the pattern rules.

XAUUSD

Gold uptrend continues until Target Zone [1183.3 – 1180.2] is broken through.

Gold is trading down in the short-term; however, Additional Zone [1191.8 – 1191.0] was broken out with consolidation above. It provides an opportunity to trade up in the correction with a target in Intermediary Zone [1200.4 – 1198.8].

I recommend buying aggressively in the broken out AZ and in the new correctional one, at [1187.4 – 1186.6].

If IZ is reached, at first, it will be relevant to look for sales in the current trend.

XAUUSD trading tips for today:

  1. Aggressive: buy in AZ [1198 – 1191.0] + buy in the correction AZ [1187.4 – 1186.6]. TakeProfit: Intermediary Zone [1200.4 - 1198.8]. StopLoss: 1185.0.
  2. Sell according to the pattern in Intermediary Zone [1200.4 - 1198.8]. TakeProfit: 1183.5, Target Zone [1177.3 – 1174.2]. StopLoss: according to the pattern rules.

XAGUSD

Silver price is drawing a sell pattern in the long-term trend. Sellers are trying to break through level [14.39 – 14.31]. Expect the breakout and look for sell trades.

Silver price is slowly but steadily approaching sell target, Target Zone [14.19 – 14.11]. Yesterday, the local lows of October 8-9 were broken through, so, the resistances should be rearranged.

Now, Additional Zone is at [14.43 – 14.41], and Intermediary Zone is at [14.63 – 14.59]. If these resistances are tested, I suggest you look for sales in the trend according to the pattern.

If AZ is broken out from below, there will be an opportunity to buy.

XAGUSD trading tips for today:

  1. Sell according to the pattern in Additional Zone [14.43 – 14.41]. TakeProfit: 14.25, Target Zone [14.19 – 14.11]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [14.63 – 14.59]. TakeProfit: 14.25, Target Zone [14.19 – 14.11]. 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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Price chart of XAUUSD in real time mode

Analysis for oil, gold and silver for 11.10.2018

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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