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-- Posted Friday, 28 January 2011 | | Source: GoldSeek.com
Rick’s Picks Friday, January 28, 2010 “Phenomenally accurate forecasts” Gold and Silver got whomped again yesterday, adding yet more carnage to a correction that will soon enter its fifth week. For long-term investors who have chosen to ride out the storm, the selloff must have seemed brutal. And yet, from early December’s high at $1432 to yesterday’s $1310 low, the loss so far has amounted to just 8.5 percent. Granted, it’s been worse for some owners of mining shares, which have declined by a little more than 17 percent, basis the ARCA Gold Bugs Index. But even that falls shy of the 20 percent standard that is often applied to separate relatively mild corrections from truly ugly ones.
How much further will bullion and precious metal shares fall? Rick’s Picks has been using a worst-case target of 1296.50 for the Comex February contract. It was first identified in the following trading “tout,” with the futures hovering around $1332: “A 1296.50 target can be tortured out of the chart I’ve furnished, and its [technical] provenance is shown in red. Because the pattern yielding that target is so visually un-intuitive, and because the breach of $1300 would touch off a minor panic, I’d categorize 1296.50 as a back-up-the-truck price where February Gold could — and should – be accumulated aggressively. A Buying Opportunity So there you have it: With respect to gold futures, we regard anything under $1300 as a buying opportunity. With respect to the April contract that has just become active, the precise target is a bit lower than the one at 1296.50 identified above. If you are not a paid subscriber but would like to find out the exact number, a Hidden Pivot derived from proprietary calculations, you can access it by taking a free seven-day trial subscription to Rick’s Picks. Click here to sign up. Once registered, you will also have access to a 24/7 chat room that draws traders from around the world, as well as to detailed trading recommendations and analysis of such popular vehicles as mini-index futures, silver, copper, crude oil, AAPL, GOOG and many others. One more thing: Our trading recommendations frequently employ very tight stops, since even the slight breach of a Hidden Pivot target can imply significantly more trendwise movement. In the case of Comex April Gold, if our target were to be exceeded by as little as 0.70, or breached on a closing basis, we would infer more downside of at least $14. *** 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 © 2011, Rick Ackerman. All Rights Reserved. www.rickackerman.com
-- Posted Friday, 28 January 2011 | Digg This Article | Source: GoldSeek.com
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