The question, of course, is whether prices will come down to the 18-week moving average of closes or elect to hold and just stay above it. Look at the chop action you've had here. You tried to break out up but failed. You tried coming down last week but failed and came right back in here. This is how you get burned in these markets right in front of holidays, and it's what's happening now. You have the higher high and lower low pattern. The market is fighting right at the 18-day average of closes.
The Bollinger top and bottom, as you can see, are very close to this 18-day average. It's not total sideways action but is tracking it in an interesting fashion. Could you get another buy signal in gold? Well, if you were to get over $2356, you'd certainly have higher lows and a higher high, assuming you didn't take out today's lows first. I don't know.
When we look at momentum, it had been oversold down here, which ties in with this break. Now the market is corrected; it's a difficult market right here.
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.
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