While surgical glove, sanitizer and face masks makers have been in focus, investors forgot that the coronavirus crisis could dampen global economic growth because China is the second largest economic in the world!
As of this morning, the death toll has jumped to more than 100 already!
Now with the coronavirus scare ramping up, gold has climbed back over USD1580, up 4% over the last month, and on its way toward USD1600 an ounce once again.
Gold prices appear to be breaking out of a cup and saucer pattern, closing a fresh 6-year higher. The movement of the coronavirus that has spread throughout Wuhan China, is driving a fresh round of profit taking in riskier asste and buoying gold prices.
Gold rallied nearly 30% after the SARs virus kicked off in 2003. SARs took about 6-months to contain.
Resistance is seen near the January highs at 1,611. The movement of the relative strength index (RSI) is positive and shows that the trend is moving higher with accelerating positive momentum.
Medium-term momentum is poised to turn positive as the MACD (moving average convergence divergence) index is above to generate a crossover buy signal. This occurs as the MACD line (the 12-day moving average minus the 26-day moving average) crosses above the MACD signal line (the 9-day moving average of the MACD line). The MACD histogram is printing in the-red and poised to cross above the zero index level which is a buy signal. The fast stochastic also generate a crossover buy signal which is a sign of accelerating positive momentum.
Poh Kong is the best proxy to play gold related stock. Looking at the current price of 58sen, it is too cheap. The high was 72sen when the gold price skyrocketed to USD1,611! At USD1,575-1,580 an ounce gold, Poh Kong should easily shoot up to 65sen! At USD1,590 an ounce gold, Poh Kong would be hovering around 68sen while at USD1,600 an ounce gold, Poh Kong would reach 70sen again!
https://klse.i3investor.com/blogs/fatprofitstock/2020-01-28-story-h1482954429-THIS_SAFE_HAVEN_STOCK_MAY_SKYROCKET_SOON_TO_FOLLOW_GLOVE_MAKERS.jsp
