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COMMENTARY for Tuesday
TODAY'S ACTION for Tuesday
Rick's Picks for Tuesday
Gold did what we asked of it yesterday, but can it keep the streak going for a second day? We should expect no less if it’s about to take off, so let’s use a Hidden Pivot resistance at 919.80 as our minimum upside objective. That would complete the pattern shown in the accompanying chart, creating a robustly bullish new impulse leg in the process, since it would exceed the April 26 high by a tick. If this were to occur, we would infer that 934.20 (A=865.60, from 4/19) is easily achievable by week’s end.
The 892.75 target kept us properly bullish through thick and thin, but our focus should now shift higher, to a minimum 919.50, now that the first number has been turned into suet. This target is a fresh one and unadvertised, so by all means short it with a stop-loss as tight as three ticks (920.25) if it’s hit today. The target is shown in the accompanying chart, and it is particularly appealing for two reasons: 1) all of the coordinates are single-bar highs/lows on the daily chart; and, 2) point ‘B’ surpassed the 869.75 peak to-the-left (i.e., it is not a “sausage” B). Incidentally, I would gain new (albeit temporary) respect for this bear rally, driven though it is by imbeciles, if it were to exceed the two peaks labeled in red without a two-day pause on the daily chart.
There are three rally targets worth considering right now, all of them between 142 and 150. The lowermost, 142.76, should be used as minimum objective for now; however, if it’s surpassed we should infer that the second, a Hidden Pivot at 144.19 broached here earlier, is likely to be achieved. And if that number too is topped, then 149.55 would become our focus. All can be shorted with a tight stop by scalpers, but the promise of the first two is somewhat dimmed by the fact that they occur within the range of two resistance peaks recorded, respectively, last September and October. The pattern labeled in yellow produced the 142.76 target, and it is sufficiently obscure that I would short it aggressively were it not positioned between the two aforementioned peaks.
June Crude’s easy move above a midpoint resistance at 51.80 suggests 56.87 is likely over the near term. Bulls can get there any way that suits them, but a “dynamic” trailing stop is suggested as the futures approach the target. It can be shorted with a stop-loss as tight as 17 cents.
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Gold and Silver Gathering Strength
by Rick Ackerman on May 5, 2009 12:01 am GMT · 3 comments
The sharp rally in gold and silver was over in less than ten minutes yesterday, giving way to a “flag” correction that was lazily continuing to unfurl almost half a day later. This is a modestly encouraging sign, since we’d gotten used to seeing bullion’s rallies evaporate like gushers of steam from a geyser. The Comex June Gold contract exceeded every minor benchmark we’d set for it, so our bias will be bullish for a change as Monday’s night session evolves. We say “bullish for a change” because we’ve been making bulls prove their case » Read the full article