-- Posted Thursday, 11 December 2008 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Thursday, December 11, 2008
“Phenomenally accurate forecasts
February Gold faltered near a crucial resistance yesterday, but initial signs suggest a bullish outcome. If so, the futures could soon be trading as high as $876, up nearly $70 over yesterday’s settlement price. The immediate impediment lies at 808.70, a Hidden Pivot that we projected as a minimum rally target a few days ago, when gold was trading around $764. Here is the actual tout that went out to subscribers last weekend, after electronic markets had sprung back to life: “With Sunday's night's modest show of strength, our focus shifts to the bullish pattern shown in the accompanying chart. It is straightforward in demanding that bulls prove their case with a strong close above 808.70, the Hidden Pivot midpoint. Once decisively past this resistance, February Gold would have what looks like an easy shot at 876.20. For now, though, we'll make 808.70 our minimum upside objective.”
Yesterday, February Gold reached 808.70 exactly, with a $35 rally; the futures then languished for the next two hours, pulling back by $10. That could have been the end of it, and we’d have looked at the rally as another failed attempt by bulls to get something going. But they mustered second wind, pushing the February contract as high as 813.90, and that suggests there is yet more buying power percolating beneath the surface. We still want to see the futures close for two consecutive days above 808.70. And to further lessen the chance of being fooled, we’ll toss out yesterday’s settlement, since it occurred just a dime above the 808.70 benchmark. We’d also ratchet up our skepticism by a hair if Wednesday night’s weakness should exceed 802.30. That’s a Hidden Pivot correction target, and we look for it to support a tradable bounce if the larger uptrend is still viable. Whatever the case, we’ll be monitoring gold’s vital signs closely in the chat room today and Friday, since it is hovering at such an important threshold.
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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. Trading in futures and options contract can be extremely risky, and it is possible to lose your shirt before you even realize what has hit you. For that reason, you should consult with your broker as to your suitability to such trading before you attempt it. 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 © 2008, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Thursday, 11 December 2008 | Digg This Article | Source: GoldSeek.com
