Oil price is, slowly but steady, going to renew the Friday’s high. After that, the short-term trend will be determined

WTI

Oil price is being corrected up after the drop last week. The key resistance is at [67.69 – 67.35]. After the zone is reached, I recommend looking for new middle-term sell positions.

Oil is still trading down in the local short-term trend. The key resistance [65.79 – 65.62] was tested last week, but there hasn’t yet been a sell signal. Yesterday, I suggested buying WTI on the correction, targeting to renew the local high. Hold your purchases in Additional Zone at breakeven.

After the Friday’s high is renewed, I recommend looking for a sell pattern again. If there is a pattern, it will be relevant to hold on sell position until the August’s low is renewed.

WTI trading tips for today:

  1. Don’t close purchases in Additional Zone [64.86 – 64.78]. TakeProfit: 65.70. StopLoss: at breakeven.
  2. Sell according to the pattern in Intermediary Zone [65.79 – 65.62]. TakeProfit: Gold Zone [63.98 – 63.80]. StopLoss: according to the pattern rules.

XAUUSD

Gold price is now testing the key resistance of the middle-term downtrend. The zone is in the range of [1194.3 – 1191.2]. It is relevant to look for sales according to the pattern in the zone.

If the resistance is broken out and gold price is consolidated above at two U.S. sessions, the trend will reverse upwards.

Gold short-term uptrend is developing. Target Zone [1194.3 – 1191.2] was reached by the price yesterday. We shall see if the zone will be broken out. If it is, the next target will be Gold Zone [1208.2 – 1206.7].

If TZ is held, the instrument price will be corrected. Correction will provide a good opportunity to buy gold at good prices, and so we shall carefully look for patterns in Additional Zone [1188.6 – 1187.9] and Intermediary Zone [1180.9 – 1179.3]. Buy target will be the current high.

XAUUSD trading tips for today:

  1. Buy according to the pattern in Additional Zone [1188.6 – 1187.9]. TakeProfit: 1195.7. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [1180.9 – 1179.3]. TakeProfit: 1195.7. StopLoss: according to the pattern rules.

XAGUSD

Silver middle-term downtrend continues. Now, silver price is being corrected. The key resistance of the trend is at [15.08 – 15.00].

The short-term trend is upward. Buy target is Target Zone [15.08 – 15.00].

The strong support, Additional Zone [14.62 – 14.60], was tested yesterday. Buyers are accumulating positions in the zone.

For today, I recommend looking for more purchases in the trend. The key support is Intermediary Zone, which is moved to the range of [14.44 – 14.40]. Look for a pattern after the zone is reached by silver price.

XAGUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [14.44 – 14.40]. TakeProfit: 14.78, Target Zone [15.08 – 15.00]. 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 USCrude in real time mode

Analysis for oil, gold and silver for 21.08.2018

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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