Leprechauns, Gold And Positive Reversals
Dragonfly Capital | Mar 17, 2017 08:43AM ET
Top of the morning to you on this St. Patrick’s Day! In college I would have been at a bar drinking green beer with a raw egg in it. Now that I have matured my sites are set on a Corned Beef sandwich for lunch, and maybe a Guinness if the market is behaving. This is a day when everyone is happy. And everyone is Irish. So put on your green and join in on the fun. Even the Leprechauns have something to smile about today.
Their pot of gold is shining a bit brighter this fine morning. The chart of gold prices below shows a reversal higher over the last two days. Like every other asset, gold can move up or down or both on any given day. So why are their Irish eyes smiling today? Maybe they have just seen a Positive Reversal in their life. An RSI Positive Reversal in the gold chart.
The higher low in the chart on this recent pullback, combined with the lower low in the RSI describes the Positive RSI Reversal. And this one targets a move up to 1280 on the price of gold. That pile could get a lot more valuable.
A move to 1280 would also put the price over its 200 day SMA, a place it has not been since November. Momentum is shifting to bullish as well with the RSI crossing the mid line and the MACD about to cross up. So no wonder this Leprechaun is celebrating early. Are you going to join him?
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 Disclaimer page for my full disclaimer.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.