Oil continues trading down, metal prices are recovering after yesterday’s drop

WTI

Oil continues trading down. Sellers tried to test Target Zone 3 [63.80 – 63.46] at the Asian session. It is the strong middle-term support; I recommend closing most of short positions close to the zone. If it is held, the instrument price can be corrected. The key resistance with good sell prices is sin the range of [67.69 – 67.35].

Yesterday, traders worked out the sell pattern in Intermediary Zone [67.06 – 66.89]. Finally, the local low was renewed and Target Zone [65.70 – 65.36] was broken out. Another support on the way down Gold Zone [63.98 – 63.80] was tested at the end of the US session yesterday.

For today, I recommend closing all short-term positions and be prepared for the price correction. During the correction, look for new sells in the trend in Additional Zone [64.84 – 64.76] and Intermediary Zone. The latter is the key resistance and is now in the range of [65.79 – 65.62].

WTI trading tips for today:

  1. Sell according to the pattern in Additional Zone [64.84 – 64.76]. TakeProfit: T Gold Zone [63.98 – 63.80]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [65.79 – 65.62]. TakeProfit: T Gold Zone [63.98 – 63.80]. StopLoss: according to the pattern rules.

XAUUSD

Gold price continues falling down. Target Zone 6 [1179.2 – 1176.1] was reached yesterday. Today, there has been a try to break out TZ6 and reach TZ7 at the Asian session. Now, the price is back in the strong support zone.

The key resistance to the trend is now at [1194.3 – 1191.2]. Until it it is broken through, look for sales. If it is broken through, we shall start buying XAUUSD.

Let’s analyze the short-term trend. Yesterday, sellers drew the price from Gold Zone [1188.7 – 1187.2] down to Target Zone 2 [1173.2 – 1170.1]. The new low emerged at the Asian session, after that, the price correction started.

Now, buyers are testing the key resistance of the local downtrend [1177.2 -1175.7]. Continue looking for sales according to the pattern. If IZ is broken out, we shall buy XAUUSD up to the upper Target Zone [1194.3 – 1191.2].

XAUUSD trading tips for today:

Sell according to the pattern in Intermediary Zone [1177.2 -1175.7]. TakeProfit: 1160.9, Gold Zone 2 [1157.7 – 1156.2]. StopLoss: according to the pattern rules.


XAGUSD

Silver price broke through Target Zone 3 [15.11 – 15.03] and reached Target Zone 4 [14.39 – 14.31]. TZ4 is the strong support on the way of the middle-term downtrend. After the zone is tested, the correction may start, with a target to test the key resistance at [15.08 – 15.00].

Analysis of the smaller margin zones suggests that the instrument is trading in the short-term downtrend. Gold Zone [14.54 – 14.50] was broken out yesterday, and so, the next sell target is Target Zone 2 [14.18 – 14.10].

Now, silver price is being corrected after the yesterday’s crash; possible correction target is Intermediary Zone [14.68 – 14.64].

To trade in the correction, you can consider buying silver in AZ [14.40 – 14.38] with a stop lass at 14.30 and take profit in IZ.

To trade in the trend, expect IZ test and look for a sell pattern.

XAGUSD trading tips for today:

  1. Aggressive: buy in Additional Zone [14.40 – 14.38]. TakeProfit: Intermediary Zone [14.68 – 14.64]. StopLoss: 14.30.
  2. Sell according to the pattern in Intermediary Zone [14.68 – 14.64]. TakeProfit: 14.29, Target Zone 2 [14.18 – 14.10]. 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 16.08.2018

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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