Local downtrend continues for gold. The first target closed on Friday
Oil is growing in price within a medium-term uptrend. Buyers are currently breaking a strong medium-term resistance level - Target Zone 2 [70.76 – 70.45]. If today’s session closes above the zone, the next growth target will be Target Zone 3 [73.86 – 73.55].
The short-term trend is ascending as well. The trading day opened with a small gap followed by immediate purchases. At the moment we can see a breakout of the Target Zone [71.20 – 70.89].
A possible growth target is Gold Zone [72.60 – 72.44]. Let’s wait for Europe’s reaction to the Asian growth and for American closures.
In case of correction, I recommend buying from strong resistance levels according to the patterns: Additional Zone [71.17 – 17.09] and Intermediary Zone [70.40 – 70.24].
WTI Trading decisions for today:
- Buy according to the pattern from Additional Zone [717 – 17.09]. TakeProfit: 793, Gold Zone [72.60 – 72.44]. StopLoss: According to pattern rules
- Buy according to the pattern from Intermediary Zone [70.40 – 70.24]. TakeProfit: 71.93, Gold Zone [760 – 72.44]. StopLoss: According to pattern rules
We’d seen gold quotes return to the area of profitable prices at [1194.3 – 1180.2] by the closure of the past week. Those who are holding medium-term long positions, put a stop beyond the level of 1180.2. If you are just thinking of long positions, I recommend that you enter on a smaller time frame.
Let’s look closely at the short-term trend. It’s descending. The first target of the bears was realized on Friday from Intermediary Zone [1209.8 – 1208.3] - the local minimum was updated. The next target is the Target Zone [1181.7 – 1178.6].
Since the minimum was updated, strong resistance levels - margin zones - need to be redrawn too. The key resistance is at [1208.9 – 1207.3] now. As long as IZ is held, refrain from buying.
XAUUSD Trading decisions for today:
Hold a part of short positions from Intermediary Zone [1209.8 – 1208.3]. TakeProfit: Target Zone [1181.7 – 1178.6]. StopLoss: at a a breakeven level.
Silver is being traded in the range between Target Zone 5 [13.67 – 13.59] and the key resistance at [14.68 – 14.61]. The priority is still “sell”.
Traders held the Intermediary Zone [14.29 – 14.25] on Friday despite a strong breakout during the day. For today, short positions remain a priority with a target at [13.87 – 13.83] (Gold Zone).
For a pattern to sell to be formed, consolidation below 20th September’s low at 14.18 is required.
If growth starts from the current prices, the trend will become ascending in case of breakout of IZ. Then, the upper Target Zone [14.68 – 14.61] will be a new target.
XAGUSD Trading decisions for today:
Sell according to the pattern from Intermediary Zone [14.29 – 14.25]. TakeProfit: Target Zone [13.87 – 13.83]. StopLoss: According to pattern rules.
IZ - Intermediary Zone - Reflects changes in priority directions of price movements
TZ - Target Zone - The zone which will be reached with a 75% chance once IZ has been broken through.
GZ - Gold Zone - The zone in a medium-term impetus
All the zones are calculated based on a daily average movement and margin requirements of the futures market.
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Price chart of XAUUSD in real time mode
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