Oil opens with a price gap. It is at the key support to the local trend now

WTI

Oil middle-term trend reversed at the end of last week. Target Zone [66.17 – 65.92] was broken out and Target Zone 2 [68.72 – 68.47] was reached wight away. Look for buys, targeting the local low.

The short-term trend is also upward. On Friday, buyers closed above Target Zone 2 [68.72 – 68.47], which opens the new target in the trend, Gold Zone 2 [69.87 – 69.74].

The market has opened with a gap today; now, the price is testing the key support to the trend [67.8 – 67.67]. If there is a buy signal, buy oil with the target to renew the local low and reach GZ2.

If the US session closes below level 67.67, follow the alternative scenario and sell down to the lower Target Zone [66.52 – 66.27].

Today's trading tips for WTI:

Buy according to the pattern in Intermediary Zone [67.8 - 67.67]. TakeProfit: 69.05, Gold Zone 2 [69.87 – 69.74]. StopLoss: according to the pattern rules.


XAUUSD

For gold, we see that last Friday closed above Target Zone 3 [1272.2 – 1269.1]. So, the strong support was held.

If the instrument is closed below TZ 3 for the second time today, it will mark the zone breakout. If the instrument price is being corrected, I recommend looking for sells from the strong supports further in the trend.

The local trend is still upward. Now, the price is trading between Additional Zone [1269.9 – 1269.1] and Gold Zone [1262.8 – 1261.2].

To sell, traders need to renew Friday’s low and consolidate below: If so, it will be a pattern to sell with the target at 1261.2.

However, don’t forget forget about the key resistance to the trend at [1278.4 – 1276.8]. After the zone is reached, look for sells either.

Today's trading tips for XAUUSD:

  1. Sell according to the pattern in Additional Zone [1269.9 – 1269.1]. TakeProfit: Gold Zone [1262.8 – 1262]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1278.4 – 1276.8]. TakeProfit: Gold Zone [1268 – 1261.2]. StopLoss: according to the pattern rules.

XAGUSD

Silver features the strong middle-term downtrend. The price broke out below TZ [16.55 – 16.47], it means that the next target is Target Zone 2 [15.83 – 15.75].

The short-term trend is downward; but there are some signs of the strong correction towards the key resistance [16.54 – 16.50].

After the key resistance is reached, I recommend looking for sell patterns with the target to renew June 21 low.

For today, you can trade aggressively during the correction: buy XAGUSD from Additional Zone [16.266 – 16.248] with the target in Intermediary Zone.

Today's trading tips for XAGUSD:

  1. Aggressively: buy in Additional Zone [16.266 – 16.248]. TakeProfit: Intermediary Zone [16.54 – 16.50]. StopLoss: 16.14.
  2. Sell according to the pattern in Intermediary Zone [16.54 – 16.50]. TakeProfit: Gold Zone [16.18 – 16.15]. 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.

 

Analysis for oil, gold and silver for 25.06.2018

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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