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How High, June Gold?Rick Ackerman
I can see as high as $703, basis June, but we'll get to that in a minute. First let me mention that subscribers who followed my advice to-the-letter could have caught one heckuva ride in gold yesterday, having boarded the June Comex contract Sunday evening, just as it was lifting off the launcher. Here's the actual recommendation, exactly as it went out on Thursday at the start of the three-day weekend: + $ June Gold (610.00)
04/13/2006 18:34:33 EST Long-time subscribers will know that we seldom buy stuff on-the-fly, preferring instead to initiate positions at trend swing-points. But, as noted in the instruction above, this particular entry strategy was based on a signal subtle enough that we went into the trade optimistic about avoiding the mooing herd. And so we did, evidently, for the futures never looked back after touching our buy-stop at 605.70; nor did we even once feel jostled by the kind of evasive maneuvers that trading vehicles take when too many traders with the same idea are on board. As bullion continued to move higher on Monday morning, I put out additional instructions that would have allowed longs to exit June Gold near the intraday high... Click here to read. By entering the trade on a Sunday, we avoided a problem that has challenged us for some time as we've sought to stake out bullish positions in Newmont Mining and some other precious-metal stocks. To wit, shares in the miners have been opening on gaps nearly every day, making them relatively less attractive for belated purchase. In this instance, though, we acted ahead of the gap by jumping on the underlying commodity itself -- just as it was starting to move. Will the rally continue? Very likely, yes. But you should keep prominently in mind the 624.60 rally target that I advertised here a few weeks ago for the June futures. It looks to me like a potentially daunting obstacle - one that could send gold into a correction phase lasting for at least a couple of weeks. If, on the other hand, the hidden pivot at 624.60 is decisively penetrated within an hour of first being touched, it would strongly imply that sufficient demand remains to push the June contract to as high as 657.20, or even to 703.00 over the next 3-4 weeks. *** Penny Pinching Grappling with the trend? Check out Rick's Picks' archives to see how well Rick Ackerman has done with his forecasts and trading strategies. You can get a free one-day pass to visit the site, or a two-week trial subscription with no risk, by clicking here. Rick Ackerman 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 ©2005-2006, Rick Ackerman. All Rights Reserved. You can subscribe here. 321gold Inc |
