Oil price reached the key resistance to the middle-term downtrend

WTI

Oil price reached the key resistance to the middle-term downtrend [70.00 – 69.65]. Position traders can look for a sell pattern and sell with a target to renew July’s low and reach Target Zone 3 [63.80 – 63.46].

The main scenario to buy in the short-term uptrend worked out yesterday. Target Zone [70.00 – 69.65] was reached, but wasn’t broken out. Now, oil price is being corrected towards Additional Zone [69.04 – 68.96].

I would look for purchases in AZ with the target to renew the local high. The second zone to look for buys in the trend is Intermediary Zone [68.18 – 68.01].

I don’t recommend buying until IZ is broken out with consolidation below.

WTI trading tips for today:

  1. Aggressively: buy in Additional Zone [69.04 – 68.96]. TakeProfit: 70.00. StopLoss: 68.56.
  2. Buy according to the pattern in Intermediary Zone [68.18 – 68.01]. TakeProfit: 70.00. StopLoss: according to the pattern rules.

XAUUSD

Gold middle-term downtrend slowed down after Target Zone 5 [1210.2 – 1207.1] was reached. But it hasn’t finished yet. So, after the resistance Target Zone [1245.6 – 1242.5] is reached, look for sells.

Let’s move on to the shorter timeframe to look for entry points for day trading.

IZ was broken out from below on July 20, followed by the price correction towards the key support. Then, gold price has renewed the local high and now is again testing Intermediary Zone [1219.7 – 1218.2].

Buy target in Target Zone [1245.6 – 1242.5] hasn’t been reached, so, it is relevant to look for purchases in the short-term. I recommend opening long positions according to the pattern.

Until IZ [1219.7 – 1218.2] isn’t broken out, it is not relevant to sell.

XAUUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [1219.7 – 1218.2]. TakeProfit: 1235.0, Target Zone [1245.6 – 1242.5]. StopLoss: according to the pattern rules.


XAGUSD

Silver continues trading down in the middle-term. Good prices to trade in the trend are in the range of [15.92 – 15.75].

Silver price chart analysis with additional margin zones suggests buying with a target in Target Zone [15.92 – 15.75]. It doesn’t contradict to the middle-term momentum.

Buying will be available if there is a pattern, which has been indicated by buyers earlier. Yes, silver traders failed to test Intermediary Zone [15.26 – 15.22], so it can still be tested. For now, I would recommend buying XAGUSD up from level 15.388 with a stop at 15.276. Buy target will be the high of July 26 + Target Zone [15.92 – 15.85].

XAGUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [15.26 – 15.22]. TakeProfit: 15.61, Target Zone [15.92 – 15.85]. 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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Price chart of USCrude in real time mode

Analysis for oil, gold and silver for 31.07.2018

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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