Written by Rick Ackerman, Rick’s Picks
Is it possible that an advance for gold of up to 28% from recent lows could occur? Gold’s rally, which took off in earnest a week ago, signaled more to come on Thursday when it pushed above two prior peaks on the daily chart (see below). This indicates a new and healthy trend, according to the proprietary Hidden Pivot Method that we use to trade and forecast the markets.
Notice that with just a little more oomph, the March contract could surpass two additional ‘external’ peaks on the daily chart (below). That would put them within a few ticks of tripping a theoretical ‘buy’ signal, shifting our focus, if not yet our expectations, to the 1434.80 target.
Buyers would still face crucial resistance at the red line, a ‘midpoint pivot’ at 1279.60, but that would become the minimum upside objective once the green line has been exceeded decisively (i.e., by $2 to $3).
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