Oil price was consolidated below Target Zone, oil trend reversal was proved
Yesterday, the US session consolidated the price at the same level as on July 11. It closed below Target Zone [70.70 – 70.41]; so the trend reversal downwards was proved. Now, it is relevant to look for sells in the strong resistance zone [71.48 – 70.41] with the target in TZ 2 [67.75 – 67.46].
Sellers were again testing the strong support Gold Zone [68.95 – 68.80] yesterday. They didn’t break it out; now, the instrument price is being corrected; it is approaching the key resistance Intermediary Zone [69.85 – 69.71].
After the zone is reached, look for a sell pattern, targeting the local low renewal and Target Zone 2 [67.75 – 67.46].
If IZ is broken out from below, we will buy next week.
Today's trading tips for WTI:
Sell according to the pattern in Intermediary Zone [69.85 – 69.71]. TakeProfit: 68.38. StopLoss: according to the pattern rules.
Gold is trading down. For now, expect either TZ 4 [1241.2 – 1238.1] breakout, or the resistance [1272.0 – 1269.0] test.
In the shorter timeframe, gold prices are approaching Additional Zone [1249.8 – 1249.1]. After the resistance is tested, look for sell signals. If there are some, sell XAUUSD targeting yesterday’s low, and then, Target Zone.
The second zone to look for sells is Intermediary Zone [1258.4 – 1256.8].
Today's trading tips for XAUUSD:
- Sell according to the pattern in Additional Zone [1249.8 – 1249.1]. Target Zone [1234.9 – 1238]. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [1258.4 – 1256.8]. Target Zone [1234.9 – 1231.8]. StopLoss: according to the pattern rules.
Silver price is now trading in the support zone Target Zone 2 [15.83 – 15.75]. The quotes will continue falling down if the price is consolidated below level 15.75.
Let’s study the situation in the shorter timeframe.
It is clear here that buyers were testing the resistance Additional Zone [15.91 – 15.89]. The zone hasn’t yet been broken out. I recommend looking for a sell pattern and sell with close targets in zone of the local low.
The second zone to look for shorts is Intermediary Zone [16.10 – 16.07]. If it is reached, trade in the way.
Today's trading tips for XAGUSD:
- Sell according to the pattern in Additional Zone [15.91 – 15.89]. TakeProfit: 15.726. StopLoss: according to the pattern rules.
- 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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