Metals are still trading up in the short-term. Continue looking for purchases

WTI

Oil middle-term trend continues; the previous weekly low has been renewed. If traders consolidate below Target Zone 7 [55.09 – 54.78], the next target will be Target Zone 8 [51.99 – 51.68]. The key resistance of the trend must be rearranged; now it is at [56.00 – 55.69].

Oil short-term trend is downward. Yesterday, Target Zone [54.83 – 54.52] was reached and broken out; so sellers reached another target Gold Zone [53.28 – 53.12].

Currently, oil price is testing the key resistance of the trend at [54.29 – 54.14]. For today, I recommend looking for sales in the zone with the first target to renew the low of Tuesday, and the second – to reach Target Zone 2 [51.73 – 51.42].

Alternative scenario to buy: IZ breakout with the consolidation above at the US session.

WTI trading tips for today:

Sell according to the pattern in Intermediary Zone [54.29 – 54.14]. TakeProfit: 52.65, Target Zone 2 [51.73 – 51.42]. StopLoss: according to the pattern rules.


XAUUSD

Gold price is rising, but the middle-term trend is still recognized as downward. After Target Zone [1233.7 – 1230.3] is tested, I suggest looking for position sales.

Yesterday, buyers were trying to reach Target Zone [1233.7 – 1230.3]. The price didn’t pass just a few points. After that, the local correction started that is still going on.

Currently, the price is testing the strong support Additional Zone [1220.3 – 1219.4]. It is the first zone to look for new purchases according to the pattern. The second zone is [1215.0 – 1210.1]. The first buy target is yesterday’s high, the second one is Target Zone.

XAUUSD trading tips for today:

  1. Buy according to the pattern in Additional Zone [1220.3 – 1219.4]. TakeProfit: 1228.5, Target Zone [1233.7 – 1230.3]. StopLoss: 1209.4.
  2. Buy according to the pattern in the zone of [1215.0 – 1210.1]. TakeProfit: 1228.5, Target Zone [1233.7 – 1230.3]. StopLoss: according to the pattern rules.

XAGUSD

Silver sellers are holding 50% Fibonacci retracement level, and they are also holding the resistance level at [14.39 – 14.32]. The middle-term trend is downward. I suggest opening sell positions provided there is a corresponding technical pattern/signal.

Let’s study the short-term chart with smaller margin zones. Silver is trading up in the short-term with the target at Target Zone [14.68 – 14.61].

Therefore, I recommend looking for purchases. Good zones to buy are the strong supports, which are Additional Zone [14.31 – 14.29] and Intermediary Zone [14.13 – 14.09]. A part of profits may be fixed at the renewal of the local high.

If Additional Zone is broken out, there will be an opportunity to trade in the correction towards IZ.

XAGUSD trading tips for today:

  1. Buy according to the pattern in Additional Zone [14.31 – 14.29]. TakeProfit: 14.48, Target Zone [14.68 – 14.61]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [14.13 – 14.09]. TakeProfit: 14.48, Target Zone [14.68 – 14.61]. 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 21.10.2018

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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