Oil traders are forming accumulation zone that is visible in the shorter timeframes

WTI

Oil price renewed the local extreme in the longer timeframe. The middle-term trend remains upward. The key support moved to the levels of [69.47 – 69.22].

In the shorter timeframe, we see that buyers faced the resistance at [71.57 – 71.45]. So, we have two bottoms with the key low close to the short-term support  [70.57 – 70.45]. There is emerging technical flat channel, directed upwards, according to margin zone analysis.

Selling will be relevant if level 70.45 is broken through and the price is consolidated below. If so, the target will be Target Zone [69.35 – 69.10].

For more buys, the price should be consolidated above the resistance, marked as the blue zone in the screenshot below. Provided this, the price will continue growing and the target will be TZ 2 [72.56 – 72.31].

Today's trading tips for WTI:

  1. Aggressively: sell from resistance at [757 – 71.45]. TakeProfit: 70.27, Target Zone [69.35 – 69.10]. StopLoss: 795.
  2. If the resistance at [71.57 – 71.45] is broken out – buy. TakeProfit: 756. StopLoss: beyond the nearest local low.

 


XAUUSD

Gold price renewed May’s low in the milled-term downtrend and broke out Target Zone 2 [1303.2 – 1300.1]. It hasn’t yet consolidated below the zone, so, it can be corrected. The key resistance moved to the levels of [1322.8 – 1319.7].

The short-term trend reversed downwards due to the deep price fall yesterday. Finally, it reached Target Zone [1294.9 – 1291.8] in a day. It hasn’t yet consolidated below, it is being corrected locally.

I recommend considering sells according to the pattern from the strong resistance zones, which are Additional [1297.2 – 1296.5] and Intermediary Zone [1305.8 – 1304.2].

We will buy the instrument in the trend when the key resistance is broken out and the U.S. session closes above.

Today's trading tips for XAUUSD:

  1. Sell according to the pattern in Additional Zone [1297.2 – 1296.5]. TakeProfit: 1289.2. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1305.8 – 1304.2]. TakeProfit: 1289. StopLoss: according to the pattern rules.


XAGUSD

Silver price renewed last week’s low and consolidated below, making up a sell pattern in the longer timeframe.

Now, while the price is being corrected, I recommend selling SILVER targeting the low of May 1 and Target Zone 2 [15.86 – 15.79].

The short-term trend reversed downwards, following its “elder brother”. Now, it is relevant to look for sells down to Target Zone [16.06 – 15.99].

From yesterday’s low, we can arrange local margin zones, which are the strong resistances with the best prices to sell according to the pattern. The resistance is at [16.55 – 16.51].

Buying will be relevant if any of the margin zones is broken out. All long trades up to the key resistance will be the trades in the correction. After level 16.55 is broken out by the price and it is consolidated above, the trend will reverse upwards. In this case, we will look for buys with the target in TZ [16.95 – 16.87].

Today's trading tips for XAGUSD:

  1. Sell according to the pattern in Additional Zone [16.35 – 16.33]. TakeProfit: Target Zone [16.06 – 15.99]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [16.55 – 16.51]. TakeProfit: Target Zone [16.06 – 15.99]. 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.

SZ - Stop Zone: point of Stop Loss setting, selected statistically.

All zones are calculated based on the average daily price of the instrument and margin requirements of the futures.

Analysis for oil, gold and silver for 16.05.2018

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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