First of all, I want to note that oil and metals worked out the targets according to the method of marginal zones. It is wonderful!

WTI

On Friday, oil continued the middle-term descending. The main target of the downtrend is Target Zone 2 [48.41 – 48.18].

Also on Friday the priority decreasing pattern was implemented, Gold Zone [49.52 – 49.41] was reached. The short-term trend remains downward, but the further decreasing it is necessary to outbreak level 49.41 and consolidate below. In this case the target will be Target Zone 2 [48.41 – 48.18].

Until then, we can count on the correction with the target to sell oil at favourable prices. I recommend to sell from the key resistance, Intermediary Zone [50.54 – 50.43]. Sell target will be GZ retest and the low renewal.

Buying oil will be available in case of IZ outbreak and consolidation above. In this situation the target will be upper «Target Zone» [51.78 – 51.56].

Trading tips for today:

Sell from Intermediary Zone [50.54 – 50.43]. TakeProfit: Gold Zone [49.52 – 49.41]. StopLoss: at Stop Zone [51.05 – 51.00].


GOLD

For gold, the middle-term decreasing target was reached, Target Zone 2 [1263.3 – 1258.4]. The price was retraced from it on Friday, and at the moment the quotes are testing the trend line in the chart. The middle-term downtrend continues.

To detail the situation, let’s turn to shorter timeframes charts. Here we also observe that, after Gold Zone [1287.8 – 1285.3] outbreak, TZ was reached. Due to negative data on the USA labour market, oil price went up, and now it is trading near the key resistance zone, IZ [1287.3 – 1284.9].

The short-term trend is downward. Because of this, I recommend to look for sells with the target of TZ2 retest.

We will buy the precious metal in case American session closes above IZ. The target then will be the reaching of upper Target Zone [1314.3 – 1309.4].

Trading tips for today:

Sell from Intermediary Zone [1287.3 – 1284.9]. TakeProfit: Target Zone 2 [1263.3 – 1258.4]. StopLoss: at Stop Zone [1298.4 – 1297.1].


SILVER

Silver is testing the key resistance in the middle-term downtrend, [16.95 – 16.90]. The zone size decreased due to the decrease of daily average progress. The further decreasing will depend on how traders close American trading session relatively to the zone indicated above.

The short-term silver trend is now upward. Let’s restore the chain of events:

  1. After TZ [16.63 – 16.57] outbreak on October, 2 in the course of the short-term downtrend, the next target became available for bears, GZ [16.33 – 16.30].
  2. On Friday GZ was reached, so the downward pattern was implemented.
  3. On Friday the key resistance, IZ [16.63 – 16.30] was outbroken, and TZ [16.95 – 16.90] was reached in one day. The trend reversed.

Now silver is trading in the strong resistance zone, which can temporarily hinder the price growth cause the correction.

Our task is to follow attentively the key support zone at [16.67 – 16.64] test and, in case there is a signal, buy the instrument. Buy target will be TZ [16.95 – 16.90] retest.

Alternative option is selling silver. But then the key support outbreak and consolidation are necessary.

Trading tips for today:

Buy from Intermediary Zone [16.67 – 16.64]. TakeProfit: Target Zone [16.95 – 16.90]. StopLoss: at Stop Zone [16.52 – 16.51].

IZ - Intermediary Zone: responsible for changing the priority direction of the price movement.

TZ - Target Zone: a zone that, with a probability of 75%, will be reached after the breakdown of the IZ.

GZ - Gold Zone: zone in the medium-term impulse.

SZ - Stop Zone: point of Stop Loss setting, selected statistically.

All zones are calculated based on the average daily price of the instrument and margin requirements of the futures.






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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