Gold had an awful 2013 but has had a great 2014 thus far. That's not news.
But, according to "The Godfather of Technical Analysis", gold may be turning itself around.
Ralph Acampora, managing director at Altaira Wealth Management, trained generations of technical analysts. No one knows technicals like Acampora and now he sees some upside ahead based on gold's short-term based on its charts.
"If you look at the short-term chart, you'll see starting in late November, gold started to stabilize," says Acampora. "In technical parlance, it has traced out a mini-head and shoulders bottom. And, right now, if you look at the chart, you'll see that it's currently above its 200-day moving average. It hasn't done that in many, many months. The near-term target is $1,384. I feel very strongly about it."
Acampora wasn't always optimistic on the yellow metal. "I have had a negative bias on gold for quite some time," says Acampora. "Because of the near-term action, I'm starting to look at the long-term."
Gold's high in August 2013 – at around $1,434 per ounce – is the next level Acampora is watching. "If we were to get above that," he says, "anyone that's had a long-term negative call on gold would have to revisit that because that would change the negative bias. So, keep an eye on that."
To see what nearer-term levels Acampora is watching in gold, see the video above.
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