Oil quotes returned to the resistance zone again. There’s an option for aggressive sells in correction

WTI

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:

  1. Aggressively: Sell from Additional Zone [72.27 – 72.19]. TakeProfit: Intermediary Zone [709 – 70.94]. StopLoss: 72.64.
  2. Buy according to the pattern from Intermediary Zone [71.09 – 70.94]. TakeProfit: Gold Zone [760 – 72.44]. StopLoss: According to pattern rules

XAUUSD

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: 

  1. 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
  2. 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

XAGUSD

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:  

  1. Hold long positions from Additional Zone [14.37 – 14.35]. TakeProfit: 14.55, Target Zone [14.68 – 14.61]. StopLoss: 14.28.
  2. 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

Analysis for oil, gold, and silver for 27.09.2018

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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