-- Posted Monday, 26 January 2009 | Digg This Article
| Source: GoldSeek.com
Rick’s Picks
Monday, January 26, 2009
“Phenomenally accurate forecasts”
Comex Gold exploded on Friday for its best single-day gain in months, leaping halfway to a $952.30 rally target we’d disseminated to subscribers the night before. We narrowly missed getting aboard at the overnight low when the March futures dipped fractionally beneath our 852.90 stop-loss just before taking off. Here’s the recommendation exactly as it was given: “The futures appear to be wedging for a thrust to as high as 952.30, but first they'll need to beat a midpoint resistance at 876.90 into bloody submission. More immediately, much as I'd love to be able to flag a Hidden Pivot support that could be bottom-fished Thursday night, one at 853.60 that is available at this moment (i.e., 7:13 p.m. EST) is likely to be stale by the time you read this. If not, and it's still viable, an 852.90 stop-loss would be appropriate. A chart alongside shows the target.”
Since our projection implies that there’s still another $50 worth of upside remaining over the near term, we’ve provided entry instructions for catching the low of a pullback Sunday night, if one occurs. We’ll revise the instructions as appropriate once Gold has resumed trading late Sunday afternoon.
Decoupling
The rally was not only powerful, it appeared oblivious to the histrionics of the dollar and crude oil. Indeed, gold rallied sharply overnight on Friday even though the dollar was quite strong. But when the dollar faded later in the day, bullion went even higher, with the February contract closing just off its intraday peak near 903.80. Crude’s rally was more closely in line with gold’s, although in percentage terms it was twice as powerful.
Is this the beginning of the surge that will finally push gold lastingly above $1000? Quite possibly. We’ll be better able to judge once the February futures have tangled with the Hidden Pivot resistance at 952.30. The way they blew past its midpoint sibling at 876.90 on Friday very strongly implies that 952.30, at least, is in-the-bag over the near term. If the target is easily breached on first contact, however, or if the futures settle above it for two consecutive days, we’d infer that the $1000 “barrier” is about to be pulped.
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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 © 2007, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Monday, 26 January 2009 | Digg This Article | Source: GoldSeek.com
