In the gold market, we have a market as I've said on a closing basis. If this market were to finish right now, this is where you'd be. Now you're going to say, "Ira, why is it $2522?". This is a weekly chart that looks at each month that's expiring, expired, going on through even if they have [light] volume in them; and that's how you pick that price up.
You can see the price is $20 higher than that on a closing basis. And you can see the market is now in a consolidation. Now, if it's going to pick up and run, which it could do, and that could get you to the $2600 level if it can come out of this whole zone; that's the big question. If the market comes out down here, probably not, you're going to have a problem. Come up this level and I think you're on to your $2600 level.
The pattern right now is one of lower highs and higher lows. So you're doing this, you're narrowing the price in as we move along. If you take a look at the 18-day average of closes, I told you a while ago that I thought the market would fight a very serious battle at that number; that's exactly what the marketplace is doing right now. That is the number the market is trying to figure out where to come from.
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.