When you look at the gold market, for the week, it is down just about a percentage point; $25 on a closing basis. You can see how the market has come down here. But now, you just have the outside day up. And when you get an outside day up, the question is can it be a continuation of the downtrend? No. It's generally a sign the market's trying to find its footing down here. The pattern has been one of lower highs, lower lows; if you look at the swing line study.
Number two, the market's fighting at the 18-day average and trying to get back to it. The Bollinger Bands are down here, and if you were to take out today's low and close lower on the day, tomorrow or Monday, that could be a problem for the market and still send it to that number down there. Not taking that out gives the market an idea that you're looking for some short covering to set in. The market is oversold, we'll see if it can get its footing down here. It's just now crossing over the 30 level, into 3049. And anything over 30's not oversold.
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.