Gold middle-term uptrend continues, silver price broke out the key support

WTI

Oil price is approaching the main target in Target Zone 2 [70.76 – 70.45]. The key support moves to the range of [67.18 – 66.87]. To buy at good prices in the trend, expect the correction.

In the local short-term trend, WTI price is approaching Target Zone 2 [70.76 – 70.45]. It is the major buy target for now.

The strong supports are in the zones of [69.50 – 69.43] and [68.73 – 68.57].To buy at good prices, you should expect these zones retest and look for patterns. A part of positions should be fixed in the zone of yesterday’s high.

It will be relevant to sell oil if the price is consolidated below Intermediary Zone. It will draw the price down towards the middle-term support at [67.18 – 66.87].

WTI trading tips for today:

  1. Buy according to the pattern in Additional Zone [69.50 – 69.43]. TakeProfit: 70.27, Target Zone 2 [70.76 – 70.45]. StopLoss: according to the pattern rules.
  2. Buy according to the pattern in Intermediary Zone [68.73 – 68.57]. TakeProfit: 70.27, Target Zone 2 [70.76 – 70.45]. StopLoss: according to the pattern rules.

XAUUSD

Gold price is being corrected slowly. The correction target is likely to be in the zone of [1194.3 – 1180.2]. After the zone is reached, look for purchases.

Sellers were testing the key support of the local uptrend at [1198.8 – 1197.3] yesterday. The U.S. session closed the price above the zone, so, it was held. Therefore, look for a buy pattern today.

The pattern will emerge if the gold price breaks through and consolidates above yesterday’s high, marked at the European session. If so, I recommend waiting for the correction and enter longs with the stop below yesterday's low. A part of profits should be fixed at the high of August 28. The major target is Target Zone 2 [1225.3 – 1222.2].

XAUUSD trading tips for today:

Buy according to the pattern in Intermediary Zone [1198.8 – 1197.3]. TakeProfit: 1214.0, Target Zone 2 [1225.3 – 1222.2]. StopLoss: according to the pattern rules.


XAGUSD

The silver trend hasn’t changed: the correction is developing between the key resistance [15.08 – 15.00] and Target Zone 4 [14.39 – 14.31].

Let’s study the chart of the shorter timeframe.

Silver traders were testing the key support to the local trend at [14.59 – 14.55] yesterday. At the end of the U.S. session, sellers broke through the zone and consolidate below. So, the local trend reversed downwards, according to margin zones.

According to technical analysis, there is a correctional upward formation developing in the longer timeframe. So, there is a contradiction.

Taking into account that it is Friday today, you’d better avoid trading silver. I suggest waiting until Monday and follow the further situation.

XAGUSD trading tips for today:

Avoid trading. Monitor the market.

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 XAUUSD in real time mode

Analysis for oil, gold and silver for 31.08.2018

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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