Metal prices have tested the key support to the short-term trend, expect a buy pattern

Let’s analyze oil short-term trend.

Oil is trading up. Buy target is Gold Zone [69.24 – 69.07]. Traders tried to test Additional Zone [67.18 – 67.10] yesterday, but buyers didn’t drive the price for just a few points and lost the control over the situation. Finally, the local high was renewed, according to which, we shall rearrange the strong supports.

For today, I recommend expecting the price correction towards the strong supports: Additional Zone or Intermediary Zone. The latter is the key support to the trend, it is bordered by the levels of [66.57 – 66.40]. Look for buy patterns after the zones are tested.

WTI trading tips for today:

  1. Buy according to the pattern in Additional Zone [67.44 – 67.35]. TakeProfit: 68.25, Gold Zone [69.24 – 69.07]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [66.57 – 66.40]. TakeProfit: 68.25, Gold Zone [69.24 – 69.07]. StopLoss: according to the pattern rules.

XAUUSD

Gold price is trading near the key resistance [1194.3 – 1191.2]. It hasn’t been closed above the zone, so the trend remains downward. However, don’t see any sell patterns now. Expect it.

The short-term trend is upward, so it is relevant to buy. In the shorter timeframe, it is clear that Target Zone [1194.3 – 1191.2] was broken out, and so, the next target is Gold Zone [1208.2 – 1206.7].

Intermediary Zone [1186.1 – 1184.5] was tested at the U.S. session yesterday and at the Asian session today. It is the key support to the trend. I recommend looking for a buy pattern there.

If the support is broken out with the consolidation below, we shall trade in the local downtrend next week.

XAUUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [1186.1 – 1184.5]. TakeProfit: 1201.3, Gold Zone [1208.2 – 1206.7]. StopLoss: according to the pattern rules.


XAGUSD

Silver is still trading in the middle-term downtrend. The key resistance is at [15.08 – 15.00]. Look for sales with the target of last week’s low.

XAGUSD is trading up in the local trend, silver price is now in the zone of good buy prices. But it is still too early to open buy positions, wait until the price growth is proved by a buy pattern.

If there is a buy pattern, enter long trades with targets: local high at 14.82 and Target Zone [15.08 – 15.00].

If IZ is broken out from above and the U.S. session closes below it, we shall sell silver with a target in the lower TZ.

XAGUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [14.47 – 14.43]. TakeProfit: 14.82, 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 XAUUSD in real time mode

Analysis for oil, gold and silver for 24.08.2018

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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