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-- Posted Wednesday, 5 April 2006 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Wednesday, April 5, 2005 For investors who’d rather be smart than lucky The good news, for reasons aired here yesterday (shown below), is that gold looks like it’s staging to blow past $600 and run up to at least $625 over the near term. The bad news is that it could pull crude oil quotes along with it. I proffer the chart below as evidence that this scenario may be about to occur. Although most technicians would regard Monday’s high at 67.90 as a double top of sorts, the fact that it exceeded early February’s peak at 67.89 by a single penny has bullish implications from a hidden-pivot perspective.
Had the thrust gone no higher than 67.89, we would have gone along with conventional thinking, classifying the uptrend of the last two weeks as a failed rally and therefore part of a likely topping process. But the one-penny overshoot has left us with a bullish bias for the near to intermediate term, since it turned the A-B segment into an impulse leg that by definition is apt to produce yet another once the current correction has run its course. With pump prices already pushing $2.50 for a gallon of regular, this would be more bad news for the economy. It would also help to explain why the Dow Industrial have been having such trouble surpassing the 10350 trigger price whose very bullish implications for the stock market I discussed here a while back. *** $600 'Barrier' Will Fall Easilyoriginally published April 04, 2006
I’m back in my office after a somewhat relaxing week in the tropics, but it would appear that I didn’t miss much. The new week began yesterday with a feeble attempt by Da Boyz to short-squeeze traders who went home on Friday expecting the world to end, as some traders always will. Fortunately, nothing of the sort occurred. In fact, the only disaster to make the headlines over the weekend involved some run-of-the-mill tornadoes in the southeast quadrant of the U.S. weather map. Meanwhile, Zacarias “Zack” Moussaoui appeared headed for conviction, which should come as a relief to those who were concerned he might be able to plea-bargain the charges down to shoplifting, second degree battery or some such minor felony.
The really good news was that gold futures were flirting with the $600 barrier. In a bulletin sent out just before I embarked on my return flight Monday morning, I said that the June contract’s easy move through hidden-pivot resistance at 577.80 all but clinched a surge through $600. Some technicians expect a struggle there, but I’d say it’s more likely to occur near 624.60, a hidden-pivot that, like all other upside resistance before it, is bound to give way. We’re determined to catch a ride on this express train, so be sure to tune to the Inside Edition if you want to come along. ***
Information and commentary contained herein comes from sources believed to be reliable, but this cannot be guaranteed. Past performance should not be construed as an indicator of future results, so let the buyer beware. Rick's Picks does not provide investment advice to individuals, nor act as an investment advisor, nor individually advocate the purchase or sale of any security or investment. From time to time, its editor may hold positions in issues referred to in this service, and he may alter or augment them at any time. Investments recommended herein should be made only after consulting with your investment advisor, and only after reviewing the prospectus or financial statements of the company. Rick's Picks reserves the right to use e-mail endorsements and/or profit claims from its subscribers for marketing purposes. All names will be kept anonymous and only subscribers’ initials will be used unless express written permission has been granted to the contrary. All Contents © 2006, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Wednesday, 5 April 2006 | Digg This Article | Source: GoldSeek.com
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