Oil has changed its middle-term trend. The correction to precious metals price has started.
Today new marginal requirements for gold has been introduced. Margin Maintenance = 4500 USD for a contact. Because of this, all the zones, which haven’t been broken through or reached by the price, need to be rearranged.
WTI For oil at the moment there is the middle-term support zone [48.45 – 48.21] test which was the resistance before. The border of the middle-term uptrend is another zone. It is a bit lower in the chart and has borders of [47.23 – 46.99]. While traders are holding this zone, preferable middle-term purchases are those with targets:
August’s high renewal. Reaching Target Zone 2 [50.85 – 50.61] In shorter time frames Intermediary Zone [48.43 – 48.31] was broken through on Friday, that indicates the shift of short-term trend to a downward one. That is why, during this week sells to lower Target Zone [47.23 – 46.99] are preferable. I recommend to consider sells from two zones: out-broken IZ and the new correctional zone [48.97 – 48.85]. Where to set StopLoss, we will decide after the corresponding extreme value or pattern has been formed. From the point of view of marginal zones, statistically verified StopLoss can be set at Stop Zone. Buying oil will be considered in case the correctional IZ is broken through and American session closes above it.
Trading tips for today: Buy from Intermediary Zone [48.97 – 48.85]. TakeProfit: TargetZone [47.23 – 46.99]. StopLoss: at Stop Zone [49.51 – 49.45].
GOLD Gold continues trading in the middle-term uptrend. The target is Target Zone 4 [1375.7 – 1371.2]. Beneficial zone for middle-term buys is bordered by [1312.3 – 1307.8].
On Monday gold trading session was opened with a slight gap. Opening price = 1334.1. This level is in Intermediary Zone [1334.8 – 1332.5] which is beneficial buys zone for the short-term uptrend.
In case of this zone retest I recommend to look for purchases with targets:
Gold Zone 3 [1350.9 – 1348.7] Target Zone 4 [1375.7 – 1371.2] Alternative option: Selling the instrument up to lower TZ [1312.3 – 1307.8] in case of the key support outbreak.
Trading tips for today: Buy from Intermediary Zone [1334.8 – 1332.5]. TakeProfit: Gold Zone 3 [1349.6 – 1347.4], Target Zone 4 [1372.9 – 1368.7]. StopLoss: at Stop Zone [1323.5 – 1322.4].
SILVER For silver the middle-term trend is an upward one.Do not close buy positions up to Target Zone 4 [18.55 – 18.45]. For middle time frame one can buy/ add to buy positions the instrument in the correctional zone TZ [17.10 – 17.00]. Let’s shift to a shorter time frame. On Friday silver price was corrected from Gold Zone [18.23 – 18.17]. Today, on Monday the correction continues. The support zone for the local uptrend is Intermediary Zone [17.64 – 17.59]. Having reached this zone look for purchases with the target of GZ retest. I recommend to consider selling the precious metal if traders close at least one American trading session below IZ. In this case short-term trend will shift to a downward one and we will sell the instrument up to lower TZ [17.10 – 17.00].
Trading tips for today: Buy from Intermediary Zone [17.64 – 17.59]. TakeProfit: Gold Zone [18.23 – 18.17]. StopLoss: at Stop Zone [17.37 – 17.34].
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.