still positive on gold

  1. 9,081 Posts.
    Black Box Forecasts: "Six hours ahead of its time"
    Rick Ackerman
    Full Trading Notes
    for Wednesday Mar 12, 2003

    Gold Chart 'Primed'

    We're not big fans of head-and-shoulders formations, mainly because they are far too popular with armchair technicians and dabblers. But we must admit to being impressed by the textbook clarity and quietly accreting power of a reverse (i.e., bullish) H&S pattern in the London Financial Times gold index. It has been building for nearly five years, with a left shoulder centered at a low made in the summer of 1998, a head created by an even lower low in November 2000, and a right shoulder formed around midyear of 2002. The chart was sent to us by a Florida subscriber, and although we cannot reproduce it herein, it depicts a commodity whose price is ready to explode. There is a kicker, too: The right shoulder describes an Elliott Wave correction pattern called a "five wave flat top triangle." Without going into detail, we will note that this pattern is nearing the end of a fifth-wave selloff. The clear implication is that the price of gold is getting ready to explode. If so, those who have stuck by bullion and mining stocks through these last, difficult six weeks can take heart: Relief is near.

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