-- Posted Thursday, 12 January 2012 | | Disqus

Comex Gold finished the day with a modest gain of $12, but not before busting through some daunting supply on the intraday charts.  Notice in the 240-minute bar chart below how the top of Wednesday’s rally exceeded three prior peaks.  According to our proprietary Hidden Pivot Method of technical analysis, bulls need only have punched through two such peaks to signal their readiness for a follow-through rally of as much as $30 over the next few days. In this case, however, they went one peak better, taking out the small “external” high recorded during mid-December’s steep selloff. That peak may not look very imposing, but its location along the wall of an Acapulco cliff dive implies that it took some extra oomph to get past it yesterday. The fact that buyers succeeded, if only by a couple of dollars, bodes well for the short-term, and traders should therefore view minor pullbacks of perhaps $4 to $6 as buying opportunities.  In the days ahead, Rick’s Picks will be monitoring price action closely intraday to identify “camouflage” entry spots that in theory can help lower the risk of initiating a trade.  If you’d like to follow along in real time, and to gain access to a 24/7 chat room that draws traders from all over, click here for a free trial to our service.

Gold’s performance yesterday was impressive for another reason that had little to do with the charts. Although strength in the U.S. dollar undoubtedly weighed heavily on bullion prices, as did the weakness in stocks, gold quotes soldiered higher. Lest we become emotionally involved if the rally continues, I’ll suggest using the 1681.70 peak shown in the chart as a benchmark for turning very bullish.  More specifically, if the ground between current levels and that external peak is traversed more or less effortlessly with no big pullbacks, it would strongly imply that the correction begun in September from $1925 is over.  Accordingly, we’ve set a screen alert there so that we’ll know exactly when it’s time to break out the bubbly.

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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 indication 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 Thursday, 12 January 2012 | Digg This Article | Source: GoldSeek.com

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