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?
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