Oil quotes are approaching the key resistance to the middle-term downtrend


WTI

Oil quotes are approaching the key resistance to the middle-term downtrend [66.97 – 66.72]. I recommend looking for sells after the resistance is reached.

The short-term trend is still upward. Yesterday, the key support was reached, which encouraged bulls. As a result, the local low was renewed and the first buy target was achieved.

Hold on the rest of the positions up to Zone [66.97 – 66.72]. It is the main target.

If the instrument price is corrected towards the strong supports, add more purchases. The key support moved to the price range of [65.00 – 64.88].

Today's trading tips for WTI:

Don’t close purchases in Intermediary Zone [64.88 – 64.76]. TakeProfit: Target Zone [66.97 – 66.72]. StopLoss: at breakeven


XAUUSD

For gold, traders are apparently waiting for the release of the Fed rate decision. The price direction can start changing today. You should be prepared for this. The trend remains downward, as there is the target below that hasn’t yet been reached, Target Zone 3 [1272.2 – 1269.1].

As for the local short-term trend...It is upward with the priority target in Target Zone [1316.2 – 1313.1]. Buying the instrument is already available, but traders are waiting and not buying.

The main buying scenario can be set back by the news on Wednesday. If sellers break out Intermediary Zone [1292.3 – 1290.7] and close the price below, the local trend will reverse downwards. If so, we shall sell the metal down to the lower TZ [1276.8 – 1273.7].

Today's trading tips for XAUUSD:

Don’t close buys. TakeProfit: 1307.5, Target Zone [1316.2 – 1313.1]. StopLoss: 1293.0..


XAGUSD

The price closed above Target Zone [16.80 – 16.72] at the US session. Today the trend should be determined. If buyers confirm their willingness to drive the price higher, up to Target Zone 2 [17.51 – 17.44], the second US session will close above level 16.80. Otherwise, the price will go back below the resistance and we will again look for sells in the middle-term downtrend.

The short-term trend is currently upward. Yesterday, there was an opportunity to enter a trade in Additional Zone [16.70 – 16.68]. The target around the previous local high was also reached.

For today, I recommend closing long positions. If the price is corrected towards the strong support zones, you should be as cautious as possible, as there is the important news release about the Fed’s rate decision ahead. I don’t recommend buying gold until the signal is not confirmed; if you enter a trade, you should quickly move your positions to breakeven.

The local trend will reverse downwards only if Intermediary Zone [16.53 – 16.50] is broken out with consolidation below.

Today's trading tips for XAGUSD:

  1. Buy according to the pattern in Additional Zone [16.72 – 16.70]. TakeProfit: 16.88. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [16.53 – 16.50]. TakeProfit: 16.88. 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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Analysis for oil, gold and silver for 12.06.2018

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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