Metals short-term downtrend is slowing down. The correction is possible
Oil price met strong support at levels [70.76 – 70.53]. The quotes are rising from the zone with the target of Target Zone 5 [73.22 – 72.98].
The short-term trend is still upward. By now, we can see that price has broken out the strong support [71.57 – 71.45] and is moving on towards the target [72.56 – 72.31].
For today, I recommend holding up purchases, adding new ones at the European and US sessions from the mirror level of [71.57 – 71.45].
Selling oil will become relevant only after the instrument breaks out the key support and consolidates below [70.57 – 70.45]. That will drive the prices towards the lower Target Zone [69.35 – 69.10].
Today's trading tips for WTI:
Buy from the resistance [71.57 – 71.45]. TakeProfit: [72.56 – 72.31]. StopLoss: beyond the neares local low
Gold price broke out Target Zone 2 [1303.2 – 1300.1] and consolidated below. The next target in the middle-term downtrend is Target Zone 3 [1272.2 – 1269.1].
Let’s analyze situation in the shorter timeframe.
The short-term trend remains downward. Yesterday, players were testing Additional Zone [1297.2 – 1296.5] and followed trading recommendation to sell targeting below the local low. After that, the price grew up again, and the US session closed near Target Zone [1294.9 – 1291.8], so this middle-term support breakout is not clear.
For more sells, I recommend looking for a corresponding pattern from the strong resistance zones. The key one is Intermediary Zone. It determines the trend border. It is in the range of [1303.4 – 1301.9].
Today's trading tips for XAUUSD:
- Aggressively: sell according to the pattern in Additional Zone [1294.9 – 1294.1]. TakeProfit: 1286.5. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [1303.4 – 1301.9]. TakeProfit: 1286.5. StopLoss: according to the pattern rules.
Silver middle-term downtrend is developing, its target is May’s low renewal and reaching Target Zone 2 [15.86 – 15.79].
In the shorter timeframe, Additional Zone [16.33 – 16.31] is being tested now. In this situation, I don’t recommend selling from there, as there is an opposite buy pattern (double bottom).
For today, it is best to wait until there is a sell signal, and look for sells from the key resistance [16.53 – 16.50].
Sell targets will be yesterday’s low and Target Zone [16.06 – 15.99].
Today's trading tips for XAGUSD:
- Sell according to the pattern in Additional Zone [16.33 – 16.31]. TakeProfit: Target Zone [16.06 – 15.99]. StopLoss: according to the pattern rules.
- Sell according to the pattern in Intermediary Zone [16.53 – 16.50]. TakeProfit: Target Zone [16.06 – 15.99]. StopLoss: according to the pattern rules.
- Aggressively: buy from support at 16.29. TakeProfit: IZ [16.53 – 16.50]. StopLoss: beyond the nearest local low.
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.
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.