When you look at gold on a weekly chart basis, when a market is over the 18-week average of closes, I automatically teach and I tell you: the bias of the market is to the upside. You need a number on a chart that tells you bullish or bearish, bias filters. What is the market doing?
If the market pulls back just the way it did here, I would expect it to be support as it did here when it rallied, I'd expect those zones to be the resistance, and then if it crisscrosses the game changes on you.
When you take a look at the Feb gold, if you take a look at this high to this low, you had a bounce of just about 50% plus and you've pulled back a little bit. Okay, the short-term trend is what right here? There isn't one. A trend is defined as having higher highs, higher lows for an uptrend; lower highs and lower lows for a downtrend...but when you have a higher high as you do here than that one and a lower low than you do on that one, you have nothing. So the market stepped out of its uptrend.
About the author
LINN & Associates
Over the past 35-years Ira Epstein has developed a reputation for providing clients with easy to use technology and teaching good old fashioned trading know-how. A number of our brokers have over 30-years trading experience. No matter how technology changes the methods of entering orders, there's no replacement for having "been there and done that before". It's the blend of services that brings things together.
Be it education, market information or trading platforms, we provide solutions.
Ira began in the futures markets in 1969. Over the years he worked his way up, starting from the ground up as a "floor runner" culminating with his becoming a Floor Trader. In the mid 1970s Ira decided to make a career shift within the industry to develop both retail and commercial based clientele. His customer base grew to the point whereby in 1984 he founded "Ira Epstein & Company", a trading firm specializing in retail, commercial and self-directed discount futures trading. Along the way Ira became a leader in trading technology out of necessity, due to increased small lot trade volume. He was among the first to embrace the Internet, which as you know has dramatically changed both the way information is delivered and how trading takes place today.
One of the ways Ira, along with his brokers showcase their talents is through e-mails of market information and Ira's "Futures Videos", which can be viewed on our website, through Market Center, Linn-IraChart Software and on YouTube.