-- Posted Friday, 4 September 2009 | Digg This Article
| | Source: GoldSeek.com
We’re no fans of head-and-shoulder formations, since they are everywhere the amateur chartist might want to find them. But there is something to be said for the bullish reverse head-and-shoulders pattern that gold futures have been tracing out for the last year-and-a-half. The pattern is shown in the chart below, and it is predicting that December Gold, which settled yesterday at 997.70, its highest close since February, is about to run up to $1060. Trouble is, just about everyone we know thinks gold is about to pop to 1060, give or take. Or nearly everyone, anyway. Someone mentioned in the Rick’s Picks chat room that CNBC’s Ron Insana can’t imagine why gold has been so strong. Earth to Ron: Put down that copy of the New York Times for a minute and try browsing GoldSeek.com. That’ll jump-start your imagination.
A little hoopla is natural every time gold butts up against $1000, as it has done no fewer than four times so far this year. Old-timers might remember the excitement on Wall Street when the Dow Industrials in 1966 first approached 1000. Few would have imagined at the time that it would be another 16 year before the Industrial Average finally leapt past 1000. We don’t think gold bugs will have so long to wait, although some of them might tell you they’ve already waited for nearly 30 years for gold to deliver on the promise of its spike to an $850 in 1980.
$1175 for Comex December?
Head-and-shoulders patterns aside, just about every decent technician we know is looking for a breakout above $1000 right now. One of the very best of them, Institutional Advisors’ Ross Clark, the Mozart of the charting world, is focusing on a triangle pattern that encompasses the right side of our motley H&S formation. From this he has deduced that gold is ready to pop to at least $1034, and thence to $1100. Our own Hidden Pivot analysis takes gold easily to $1074.00, but we could see $1175 (basis the December Comex contract) if the rally should exceed that number by more than a few bucks. What then? Hard to say, but if gold is indeed about to break loose, it would imply that the world financial order is about to experience some wrenching changes.
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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 © 2009, Rick Ackerman. All Rights Reserved. www.rickackerman.com
