Commodities are trading in opposite directions today

WTI

Oil is actively being purchased. Traders broke out Target Zone 3 [71.27 – 71.02] yesterday.

If the US session is trading above level 71.27 today, we shall seek the new target in Target Zone 4 [73.82 – 73.57] tomorrow.

The short-term trend is still upward. Yesterday, the instrument “closed” to price ranges: between Gold Zone 2 and TZ 3; and from TZ 3 up to Gold Zone 3. A very strong upward momentum. Finally, the price reached the strong resistance zone [72.42 – 72.30]. It will grow higher if the zone is broken out. Until it occurs, we can count on a correction to buy the instrument at good prices.

I recommend buying from the key support when there is a corresponding pattern. The support is between the levels of [71.16 – 71.03].

Today's trading tips for WTI:

Buy according to the pattern in Intermediary Zone [71.16 – 71.03]. TakeProfit: 72.42. StopLoss: according to the pattern rules.


XAUUSD

Gold is falling in price, approaching the next target, Target Zone 4 [1241.2 – 1238.1]. The key resistance is in the range of Target Zone 4 [1241.2 – 1238.1].

Let’s study the situation in the shorter timeframe.

The trend is clearly downward. As Gold Zone [1262.8 – 1261.2] was broken out, the target is now in Target Zone 2 [1247.3 – 1244.2].

For today, I recommend looking for sells in the resistance zones, Additional Zone and Intermediary Zone. The latter is the key resistance and the local trend border.

Today's trading tips for XAUUSD:

  1. Sell according to the pattern in Additional Zone [1259.3 – 1258.6]. TakeProfit: 1251.8, Target Zone 2 [1247.3 – 1244.2]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [1267.9 – 1266.3]. TakeProfit: 1251.8, Target Zone 2 [1247.3 – 1244.2]. StopLoss: according to the pattern rules.


XAGUSD

Silver, like gold, is trading down in the longer timeframes. The decreasing target is Target Zone 2 [15.82 – 15.75].

The local trend is also downward. Gold Zone [16.19 – 16.15] was broken out yesterday, the target for sellers is now in Target Zone 2 [15.82 – 15.75].

I recommend looking for sells during the price correction towards the strong resistances, which are the margin zones Additional Zone [16.12 – 16.10] and Intermediary Zone [16.32 – 16.28].

Buying will be relevant only if there is IZ breakout and consolidation above. Then, the trend will reverse and the target will be in the resistance [16.71 – 16.64].

Today's trading tips for XAGUSD:

  1. Sell according to the pattern in Additional Zone [16.12 – 16.10]. TakeProfit: 15.94, Target Zone 2 [15.82 – 15.75]. StopLoss: according to the pattern rules.
  2. Sell according to the pattern in Intermediary Zone [16.32 – 16.28]. TakeProfit: 15.94, Target Zone 2 [15.82 – 15.75]. 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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Analysis for oil, gold and silver for 28.06.2018

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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