Rick's Picks

We're On Board For Gold's Surge

Rick Ackerman
Thursday, Aug 4, 2005

Excerpt from Rick's Picks (website).
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Bullion has perked up nicely in the last few days, delivering on the promise of certain bullish technical signs that I cited here last week in an intraday bulletin: "Some VERY bullish action in gold this morning," I wrote then. "The ABCD pattern I've labeled in the August Gold chart below projects to a crystal-clear hidden pivot at 429.80, but the futures have exceeded it by 70 cents. Moreover, they've generated a strong impulse leg by exceeding the 430.10 high recorded on July 7. The impulse leg began with the July 19 low, 418.90, and not the more recent one achieved on Wednesday at 421.80. This means that when this rally finally corrects, it is all but certain to produce a follow-through leg of at least 11.60 points."

(Click on chart to enlarge)

Especially encouraging is that the latest impulse leg has since tacked on an additional $7. This suggests that when the current, minor-cycle high is made and the futures pull back a bit, we could see a follow-through thrust of 18 points or more from the correction low, basis December. We currently hold tracking positions in several mining stocks that are showing substantial gains as a result of timely profit-taking. The stocks are: Coeur d'Alene, with a cost basis of 2.57, versus yesterdayís 3.83 close; Canyon Resources, with a cost basis of 0.55, versus a current 0.65; and Bema Gold, with a cost basis of 1.60, versus a current 2.50. If the rally continues we will want to expand the scope of our precious-metal holdings as aggressively as opportunity allows, always trying to buy and to augment long positions at hidden-pivot supports while taking profits at hidden-pivot rally targets. I will also continue to offer technical analysis and trading strategies for your personal favorites each Wednesday morning during the increasingly popular, real-time Q&A sessions.

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Penny Pinching

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Rick Ackerman
email: publisher1@rickackerman.com

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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 ©2005, Rick Ackerman. All Rights Reserved. You can subscribe here.

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