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Gold ‘Way Oversold’: Tim Seymour

Wednesday, 20 Feb 2013 | 5:51 PM ET
Gold Approaches 'Death Cross'
As gold closes below $1,600, the Fast Money traders discuss their favorite plays on gold now. Jeff Korzenik, formerly at Fifth Third Bank, explains why you should invest in the re-shoring movement of bringing back manufacturing jobs to the U.S.

As gold approaches its "death cross," Tim Seymour of EmergingMoney.com said Wednesday that he sees opportunity in the metal and a couple of miners.

"I would actually say that gold right now at an 11 RSI and getting back to the lows of May is way oversold," he said. "You're effectively at a double-bottom."

On CNBC's "Fast Money," Seymour brushed off the so-called "death cross," when an asset's 50-day moving average dips below its 200-day moving average. The phenomenon ostensibly signals a bear market ahead.

"This chart doesn't scare me," he said. "It might be an opportunity."

(Read More: Gold Poised for a Bounce: Rick Rule)

Seymour also saw a shift in gold mining companies.

"The correlation of the gold miners to the metal is something that may be ending," he said.

His top two picks, Seymour added, were Harmony and Barrick, which operates in less politically unstable areas.

Trader disclosure: On Feb. 20, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Dan Nathan is long BBRY FEB/APRIL 14 PUT SPREAD; Dan Nathan is long FB APRIL 34 CALLS; Dan Nathan is long AMZN APRIL 240/200/160 PUT FLY; Dan Nathan is long QID / SHORT QQQ; Dan Nathan is long SDS / SHORT SPY; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long C; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is short PAY; Karen Finerman is short IWM; Karen Finerman is short SPY; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long SBUX.

  Price   Change %Change
GOLD
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GDX
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HAR
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ABX
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