When you look at the gold, it's certainly when you go to an area chart of closes of a monthly chart, this thing hasn't backed off. It is still bullish as can be right there.
You can see how gold keeps backing off here. In one way, but there's another. Lower highs, lower lows, but if you take out last week's high, that's the key. Then you suddenly have higher lows, and that keeps you in that triangle, and that's what I think you're trying to do right here.
The resistance is around the $3471 level. Again, going for those highs, if it can get up there off this news. Momentum-wise, it's not saying bye. Momentum is in a pattern here that is overbought, not embedded. And the way I teach momentum, when you have an overbought condition, you're not a buyer in it. So I have many factors here that are interesting to talk about, none to trade off.
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.
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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.