Oil price is being corrected to the middle-term upward momentum

WTI

Oil price is being corrected to the middle-term upward momentum. The correction target is likely to be at the key support to the trend at [65.52 – 65.31]. Afetr the zone is reached and tested, look for purchases.

The short-term trend reversed downwards yesterday. So, we close all buy positions and look for sell ones.

For now, the quotes are trading in the zone of good sell prices. WE can sell from the current levels with a stop beyond yesterday's high at the American session.

The second level to look for sells is the key resistance at [67.23 – 67.13]. If it is tested, I recommend expecting a sell pattern.

The zone to take profits for short positions is Target Zone [65.52 – 65.31].

Today's trading tips for WTI:

Sell in Intermediary Zone [66.57 – 66.46]. TakeProfit: Target Zone [65.52 – 65.31]. StopLoss: 66.97.


XAUUSD

Gold quotes are rising from the key support to the middle-term uptrend at [1334.2 – 1331.5]. The upward target is last week’s high.

In the shorter timeframe, the short-term downtrend continues, but there isn’t yet a buy signal. To form the pattern, it is necessary to renew yesterday's low at the European session. If it occurs, open a position during the correction and hold it with the target of 1331.1.

If there is Intermediary Zone [1350.2 – 1348.6] breakout, we will buy gold during the zone retest, and set Take Profit at the upper Target Zone [1367.2 – 1364.1].

Today's trading tips for XAUUSD:

  1. Sell according to the pattern in Intermediary Zone [1350.2 – 1348.6]. TakeProfit: Target Zone [1334.2 – 1331]. StopLoss: according to the pattern rules.
  2. If Intermediary Zone [1350.2 – 1348.6] is broken out– buy during the retest. TakeProfit: Target Zone [1367.2 – 1364.1]. StopLoss: 1343.4.

XAGUSD

Silver buyers are trying to draw the quotes outside the range of [16.62 – 16.05]. As soon as the price is consolidated above level 16.62, we will look for middle-term buy positions.. Meanwhile, I recommend waiting with respect to the middle-term positions.

In the chart with additional margin zones, we see that the short-term trend reversed upwards, as the American session closed above IZ yesterday.

Two zones are the most interesting for us: Additional Zone [16.632 – 16.623] and Intermediary Zone [16.54 – 16.52].

During the first zone retest we can buy silver with a stop below daily low. In the second one, it is better to look for a reversal pattern. Target is the upper TZ [16.76 – 16.73].

Today's trading tips for XAUUSD:

  1. Buy in Additional Zone [16.632 – 16.623]. TakeProfit: Target Zone [16.76 – 16.73], 16.815. StopLoss: 16.577.
  2. Buy according to the pattern in Intermediary Zone [16.54 – 16.52]. TakeProfit: Target Zone [16.76 – 16.73], 16.815. StopLoss: according to the pattern rules.

IZ - Intermediary Zone: responsible for changing the priority direction of the price movement.

TZ - Target Zone: a zone that, with a probability of 75%, will be reached after the breakout of the IZ.

GZ - Gold Zone: zone in the medium-term impulse.

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 17.04.2018

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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