Brent Crude Oil, Gold/EURO, Gold/GBP interim Update 16 September
Our recent long position shows an opportunity gain after the spike we saw today.
We recommend an immediate sale and return to a flat position and review a fresh entry once the gap open is filled at around 60.00.
The market appears to be closing nearer the highs with a 13% gain from Friday’s close and 9% from our entry level.
As shown in the below chart the gap opening is likely to be filled as a matter of general statistic and usually fairly quickly like within a few days to 2 business weeks maximum.
The drone attack details are thin are raise more questions if anything. Besides, the delivery slowdown from the refinery will have little economic effect except that major industry players may see an opportunity to offload against sudden significant demand.
All time frames except hourly are likely to point up just before today’s New York close.
The strategy could be to wait for a ST Daily sell signal but that may not come until a much lower closing price triggers it.
If the Far East opening is relatively strong this would be a good opportunity. If not get out anyway.
Gold/EURO and Gold/GBP
We indicated that we might re-enter to a full allocation of Gold based on Today’s close by adding to the initial long position established nearly one year ago. That is if Today’s ST daily close would signal a risk weight uptrend. The Daily is still up at time of writing, but MT Weekly is pushing down and we prefer to wait and not accumulate more Gold vs Pound Sterling and Euro at this moment. The risk of taking our time together with full allocation vs Silver is the correct risk strategy because the weekly downtrend can still push prices 3-5% lower.