-- Posted Wednesday, 14 April 2010 | Digg This Article | | Source: GoldSeek.com
Rick’s Picks Wednesday, April 14, 2010 “Phenomenally accurate forecasts”
Although Comex Gold missed a bullish trigger point by a hair the other day and has since sold off by about 2%, we expect the loss to be easily recouped, and gold quotes to be bounding sharply higher, by no later than next mid-week. Readers may recall that we recently projected a surge in June Gold to at least $1245 once $1171.80 was exceeded. A thorough explanation of the proprietary method we used to forecast this outcome, as well as details concerning the upcoming Hidden Pivot Webinar, can be accessed by clicking here. Suffice it to say, on Monday, gold futures tiptoed to within an inch of our threshold, peaking at 1170.70. A further rally of $1.20 would have done the trick, but it was not to be; instead, the futures retreated without having exceeded the resistance peak shown in the chart below.
The resistance is what we refer to as a “look-to-the-left” peak. It is just obscure enough that not all chartists and traders, even diligent ones, will tend to notice it. But we most surely do, since, according to the Hidden Pivot Method, each discrete upthrust must surpass at least two prior peaks to re-energize the bull trend. When a rally narrowly fails to do this, we usually infer that buyers are a bit timid. In this case, however, although the rally appears to have chickened out just shy of the “look-to-the-left” peak at 1171.80, it did so after having surpassed no fewer than four other resistance peaks. We’ve labeled them in the chart above and note that the peaks #3 and #4 are “external” highs whose breach implies more buying power than the breach of “internal” peaks #1 and #2. What to Look For… In this context, we should think of gold’s recent rally from 1086.10 to 1170.70, not as a mild failure, but as promising success. Although that assumption would be challenged by a severe selloff, as long as the futures hold above 1118.40 (i.e., a 0.618 retracement of the most recent rally cycle), we’ll stick with the assumption that a bullish surge to at least 1245 is imminent. We would assume the rally to be under way following a “booster-stage” thrust of at least $21 from any low above 1118.40. *** 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. There is a substantial risk of loss in futures and option trading, and even experts can, and sometimes do, lose their proverbial shirts. 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
-- Posted Wednesday, 14 April 2010 | Digg This Article | Source: GoldSeek.com
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