The Bearish Case For Gold: A Sharp Price Correction To $1255.90 May Be Imminent

The bearish case shows that a sharp gold price correction may be imminent, but the danger of a correction could be averted. Here’s how…

by Rick Ackerman of Rick’s Picks

April Gold’s tortuous slog toward an ‘easy’ rally target at 1332.00 warrants a closer look at the bearish case. For if the futures were to fall just $9 to the green line at 1307.40 shown in the chart (click on inset), that would trip a theoretical sell signal to as low as 1255.90 — a 4.5% plunge from current levels.

Although the bull trend begun last August from 1182 still dominates the daily chart, the A-B countertrend in the chart is sufficiently compelling to imply that a sharp correction may be imminent.  The danger would be averted by a rally exceeding 1356. 80, where a small but technically significant peak was notched on the way down from 1400 last spring.

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