Oil quotes returned to the resistance zone again. There’s an option for aggressive sells in correction
We see that the medium-term uptrend for oil has stopped. Buy in case of correction in the zone of [69.54 – 69.23]. The target is TZ 3 [73.86 – 73.55].
On a shorter time-frame, the quotes are trading in an uptrend. Additional Zone [71.87 – 71.79] was broken yesterday, but the price had returned into the zone by the closure of the American session.
Buyers are now testing a new resistance level in the form of AZ [72.27 – 72.19] built from yesterday’s low. Another powerful resistance - Gold Zone [72.60 – 72.44] - is located near this zone.
Giving a summary of the above, today’s recommendation will be as follows:
Aggressive selling from the resistance levels to Intermediary Zone [71.09 – 70.94]. The only condition: the European session shall open below AZ.
WTI trading decisions for today:
- Aggressively: Sell from Additional Zone [72.27 – 72.19]. TakeProfit: Intermediary Zone [709 – 70.94]. StopLoss: 72.64.
- Buy according to the pattern from Intermediary Zone [71.09 – 70.94]. TakeProfit: Gold Zone [760 – 72.44]. StopLoss: According to pattern rules
No changes in gold quotes on a longer time-frame. The price is currently located in the zone of profitable purchases, so think about both opening new long trades and topping up your current positions.
Let’s analyse the chart on a shorter time-frame. We see that the local downtrend continues. Last week’s low was updated yesterday, so the resistance zones need to be rebuilt.
The limits of new Additional Zone: [1199.0 – 1198.2]. Intermediary Zone is located at [1207.6 – 1206.0]. To sell in a trend, we need to search for a reversal pattern from these 2 resistance levels. There’s no pattern at the moment.
XAUUSD trading decisions for today:
- Sell according to the pattern from Additional Zone [1199.0 – 1198.2]. TakeProfit: 1190.8, Target Zone [1187 – 1178.6]. StopLoss: According to pattern rules
- Sell according to the pattern from Intermediary Zone [1207.6 – 1206.0]. TakeProfit: 1190.8, Target Zone [1181.7 – 1178.6]. StopLoss: According to pattern rules
Silver quotes are approaching the key resistance at [14.68 – 14.61]. Wait till the zone is tested and search for signals to sell.
The short-term trend remains upward for Thursday. Additional Zone [14.37 – 14.35] was tested yesterday and wasn’t broken. During the Asian session, buyers brought the price back to the zone, so it would be wise to hold yesterday’s buys with a target in Target Zone [14.68 – 14.61].
If correction turns out deep and reaches Intermediary Zone [14.19 – 14.16], I recommend looking for short positions again, according to the confirmation pattern this time.
For a trend change, consolidation below IZ is required.
XAGUSD trading decisions for today:
- Hold long positions from Additional Zone [14.37 – 14.35]. TakeProfit: 14.55, Target Zone [14.68 – 14.61]. StopLoss: 14.28.
- Buy according to the pattern from Intermediary Zone [14.19 – 14.16]. TakeProfit: 14.55, Target Zone [14.68 – 14.61]. 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 USCrude in real time mode
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