WaveStrength Material Profits for November 06, 2006
How oil and gold will play out the end of the year
Material Profits
How oil and gold will play out the end of the year
By Sara Nunnally
You’ve all heard me talk about oil and energy for this whole year. And, of course, we’ve tangled with the gold gods a bit, ending the year with more than our fair share of scratches…
So, I’m going to take this time to give you a little forecast of where I think the two are headed for the remaining days of 2006. It’s part of my countdown to 2007.
Over the next couple weeks, I’ll be laying the foundation for my latest special report, making major predictions on where certain commodities might be heading. In these articles for Market Report, I’ll be talking about the end of the year, but my special report will be geared towards seven specific predictions for 2007.
Let’s start with oil. Oil, after taking what some analysts called a “swan dive,” has flattened out. In fact, crude turned a down day into an up day, gaining more than $1 by 1:30 p.m. EST.
I noted several days ago in a TFN Chart of the Day that I saw bottoms in natural gas and heating oil, and that it was only a matter of time before crude oil showed the same thing. What has to happen now, though, to really turn things around, is oil climbing above $64.95. Volume began steadily rising when oil prices started to slow their fall.
I think the speculators are starting to jump back into the game. I think we’ll see oil at $65 a barrel by Christmas, waiting to break higher into the cold months of winter.
There’s Prediction #1: $65 a barrel for oil by December 25. Here’s Prediction #2…
Gold will be above $650 an ounce.
There’s no doubt this precious metal has made quite a comeback in the past couple weeks. Since October 24, gold’s risen 7.7%. There could be an inverted head-and- shoulders pattern forming, and that’s a very bullish sign.
With prices back up above $625 an ounce, you might think my gold prediction a bit conservative. Well, you could be right… but with such a swift rise of late, I wouldn’t rule out some consolidation in gold’s price right now.
That means a bit of a slower rise at best.
The long term, however, is another story, and you’ll just have to wait until I release my special report to learn more about it.
There you have it. Two predictions for the end of the year: Oil at $65, gold at $650. I like the symmetry of that.
P.S. For those of you keeping track that’s a ratio of 10.