Spot Gold is testing support at its initial target of $1600/ounce. The long tail is evidence of buying support, but failure would test $1500. The primary trend direction remains up and, despite gold experiencing a strong correction, is unlikely to change.
* Target calculation: 1750 – ( 1900 – 1750 ) = 1600
Brent crude is testing support at $104/barrel while Nymex WTI crude is at $80/barrel. There is no sign of the divergence between the two grades closing. Both have signaled a primary down-trend, though Brent has yet to confirm with a break of its rising trendline.
* Target calculation: 105 – ( 120 – 105 ) = 90
Outlook for gold stocks??
Many thanks
That divergence on Brent vs WTI is interesting. I wonder whether a strategy would be to buy one & sell the other & wait for the divergence to come back together & pocket $10 a barrel. Is there a valid reason for the large divergence in price? I understand they are different grades of crude but why have the prices diverged so much this year.
Futures magazine gave good coverage of this.
With respect to gold on Sept. 29 you say the primary trend is up/ Looking at the charts given, what should I be looking at to come to that conclusion?
Draw a trendline or trend channel on a 4-year weekly chart. Regards, Colin