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.
Join the Dragonfly Capital Views Premium Membership
This analysis and these trade ideas are typical of the daily earnings piece of the Premium Service, which is complemented by weekly stock ideas, macro trend analysis and access for personalized analysis. Sign up here to get deeper analysis and nearly 50 trade ideas every week.
If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.blog comments powered by Disqus
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)
- Top Trade Ideas for the Week of October 5, 2015: The Best
- SPY Trends and Influencers October 3, 2015
- Macro Week in Review/Preview October 2, 2015
- How This Week’s Top 10 Performed, October 2, 2015
- The US and China living in Harmony
- Picking up a seasonal bargain in Tractor Supply
- Premium Earnings 10-1-15
- I still like the US Dollar
- Going Shopping for Ascena Retail Group
- Waiting for the Right Moment to Buy?