Gold Looks Great if You Live in Japan
- Posted by Greg Harmon
- on November 16th, 2012
Gold has been hit over the last few weeks and may still settle lower. But if you happen to be a wandering type, take a trip over to Tokyo. Visit the Emperors Palace and climb Mt. Fuji, oh and before you leave take a look at Gold from there. Priced in Yen the shiny yellow metal looks ready to break out higher. Using the ratio chart of the Gold ($GLD) against the Yen ($FXY) below as a guide there are at least 5 reasons to consider buying Gold in Yen. First, the ratio is breaking a bull
flag higher. The target on the pattern break is a move up to 1.50, of 9.5% higher. Next, the RSI is turning back higher, after holding bullish and supporting further upside. Third, the Bollinger bands are opening to the upside to facilitate a move higher. Fourth, the Moving Average Convergence Divergence indicator (MACD) has crossed to positive and is increasing, supporting a continued move higher. Finally, the ratio is above the 20, 50, 100 and 200 day Simple Moving Averages (SMA) which are all trending higher.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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