So if we take a look at gold and let's go right there, the battleground's crystal clear to me on a weekly chart of closes. It's the $2025 area.
So what will the market do there is going to be the big question. When we look at a daily buyer chart, you can see how the market has come up, fighting a battle there. The pattern is still bullish and notice that in order to break the uptrend, you've got to take out that $2025 area. Just interesting how it's all tying together and we have two numbers that have now converged on themselves.
The 18-day average closes at $2035.90 and $2033.60, the 100-day average. So I expect to see some buying against that. If you take out that $2025.40, I think the bulls will abandon their long idea; I don't think that throws out a sell signal by the way, because you'd have a higher high and a lower low, but that's where I'm looking for the support...and the question is on rallies, where can you go?
What's happening, are the Bollinger Bands are wrapping their arms around price. Now, it's the top band collapsing much faster than the bottom band, you can see you're getting a gradual arc here, whereas this is now pulling itself down – and it's going to drop fairly fast if prices don't go up. So right now you're breaking to the tune, your $2064.70, your $2070.70 and $2074, so it's in about $4 dollars a day right now that you're dropping.
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.