Gold Looks Great...If You Live In Japan
Dragonfly Capital | Nov 18, 2012 12:07AM ET
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 the 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.
Disclosure and Disclaimer: 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 Original post
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