2019-12-20 2018-06-07 Analysis for oil, gold and silver for 07.06.2018 Alex Rodionov 2019-12-202018-06-07

Silver uptrend extends. Trading ideas to buy are worked out

WTI

WTI traders broke out the middle-term support [65.39 – 65.14] and consolidate below. The next upward target in the middle term is Target Zone 4 [62.84 – 62.59].

The short-term trend is also downward. Buyers were testing the key resistance at [65.57 – 65.44] yesterday. The zone was held, followed by the quotes decline and a try to break through Gold Zone [64.79 – 64.67].

Finally, the main downward pattern was worked out and Gold Zone was held. The price will go down lower if the US session closes below level 64.67.

Alternative scenario: buying oil if the key resistance is broken out. In this case the target will be the upper Target Zone [66.97 – 66.72].

Today's trading tips for WTI:

Don’t close a part of sells in Intermediary Zone [65.57 – 65.44]. TakeProfit: Target Zone 2 [63.52 – 63.26]. StopLoss: at breakeven

XAUUSD

Gold is trading in the accumulation zone. The middle-term trend is downward, so the price is likely to fall down to Target Zone 3 [1272.2 – 1269.1].

The short-term trend is upward. Currently, buyers are set back by the local resistance at [1297.9 – 1297.1].

To buy safely, it would be good to see the local resistance breakout with consolidation at any trading session. If so, [1297.9 – 1297.1]. is highly likely to be reached by the price.

According to technical analysis, we already can open purchases, as the price went up from the accumulation zone, a buy pattern has also emerged.

Summing up all the above, I recommend buy/hold on buys with a small (!) volume, and, after the zone of [1297.9 – 1297.1] is broken out, add one more purchase with a stoploss beyond the local low.

Today's trading tips for XAUUSD:

Don’t close buys/ buy in Intermediary Zone [1292.3 – 1290.7]. TakeProfit: Target Zone [1316.2 – 1313.1]. StopLoss: according to the pattern rules.

XAGUSD

Silver price is again approaching the key resistance to the middle-term downtrend [16.80 – 16.72]. You should take into account that a reversal pattern may emerge.

The trend got further momentum after a long phase of accumulating positions. The high of May 25 was renewed yesterday; and a part of purchases can be closed there. Hold on the rest of buys up to the target Target Zone [16.93 – 16.85].

We shall rearrange margin support zones from the new high, and, if the price is corrected towards them, we shall again look for buys.

Selling will be relevant is the entire yesterday’s rise is engulfed and Intermediary Zone [16.32 – 16.29] is broken out. This scenario is unlikely.

Today's trading tips for XAGUSD:

Don’t close buys in Intermediary Zone [16.30 – 16.27]. TakeProfit: Target Zone [16.93 – 16.85]. StopLoss: at breakeven

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.

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.

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