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-- Posted Friday, 30 March 2007 | Digg This Article | Source: GoldSeek.com
Rick’s Picks Friday, March 30, 2007 “Phenomenally accurate forecasts”
Since gas at the pump seems primed to surge above $3.00 before the summer driving season even begins, I thought it might be a good time to check some NYMEX charts to see whether they concur. In fact, June Crude is hovering near an important price target at 68.76, having spiked to a 68.09 top earlier in the week. My hunch is that if it blows past the higher number – meaning, exceeds it by more than about 30-40 cents -- it will be signaling significantly higher prices over the near- to intermediate-term. This is by no means a foregone conclusion, and it is still possible that Tuesday’s parabolic surge will prove to have been the last gasp of the 2007 bull.
Prices at the pump have risen fairly sharply in recent weeks and are currently averaging around $2.67 nationally for a gallon of regular. But that’s liable to seem cheap if the price of a gallon of crude is indeed headed above $70. (Note: the record, unadjusted for inflation, was $78.40 a barrel last July).
The chart above shows the uptrend that has given us the 68.76 target, a Hidden Pivot. If it were to be breached there is just one more such pivot that could stop a surge to new record highs: 72.38. But the lower number is where the real battle is going to occur, and my strong hunch is that if it gives way, RV road-trippers, along with the rest of us, are going to be cursing the refiners from July Fourth till Labor Day and beyond.
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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 Friday, 30 March 2007 | Digg This Article | Source: GoldSeek.com
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