Commodities are trading down today

WTI

As a result of oil trading yesterday, there are some conditions for the trend reversal. According to technical analysis, there is 1-2-3 pattern in the longer timeframe. According to margin zones, expect the US session closing below level 70.41 for the second time. If it so, look for sells with the target in Target Zone 2 [67.75 – 67.46].

The short-term trend reversed downwards. Yesterday, Intermediary Zone was broken, and two supports were reached: Target Zone and Gold Zone [68.95 – 68.80]. The latter was held, so, today, the price can be corrected towards the key resistance, [70.33 – 70.18].

After the zone is reached , look for sells with the target to renew the local low.

Today's trading tips for WTI:

Sell according to the pattern in Intermediary Zone [70.33 – 70.18]. TakeProfit: Gold Zone [68.95 – 68.80]. StopLoss: according to the pattern rules.


XAUUSD

Gold buyers couldn’t draw the price up to the key resistance to the middle-term downtrend [1272.0 – 1269.0]. Finally, sellers are again testing the middle-term support Target Zone 4 [1241.2 – 1238.1]. If it is broken out, the next target in the trend will be TZ 5 [1210.2 – 1207.1].

Let’s move on to the shorter timeframe and analyze the short-term trend. The price broke out Intermediary Zone [1250.4 – 1248.9] and was consolidated below, therefore, the trend reversed downwards.

Today, I recommend selling from the strong supports. To sell, look for a pattern and set the first take profit at the renewal of the local low, the second one – in Target Zone [1234.9 – 1231.8].

Today's trading tips for XAUUSD:

  1. Sell according to the pattern in Additional Zone [1249.8 – 1249.1]. Target Zone [1234.9 – 1238]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1258.4 – 1256.8]. Target Zone [1234.9 – 1231.8]. StopLoss: according to the pattern rules.

XAGUSD

Silver is trading in the support zone Target Zone 2 [15.83 – 15.75] now. The quotes will continue falling down if the price is consolidated below this support.

Let’s analyze the price moves in the chart with additional margin zones.

The main downward scenario has worked out here: from IZ, the price reached Target Zone and the low of July 2 was renewed. For the further decline, expect TZ breakout.

In case of correction, look for more sells. The strong resistance zones, interesting to us, are Additional Zone and Intermediary Zone.

Today's trading tips for XAGUSD:

  1. Sell according to the pattern in Additional Zone [15.91 – 15.89]. TakeProfit: 15.726. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [16.10 – 16.07]. TakeProfit: 15.726. 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 12.07.2018

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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