So as we come back to the gold market, you can see the bat on the weekly charter shaped up, just where I thought it might, which is on a closing basis – the $2023.90 level, which is the 18-week moving average of closes, but that's a weekly chart of just closes.
When you look at the daily [chart], you can almost see that the market from this peak dropped and came back about halfway and it just sort of sitting in between the two areas, right there. The pattern is bullish in that you have higher lows and higher highs.
So until you take out this low over here which was last Friday's low, I'm of the opinion that the market is fighting for an upward trend against the 18-day average of $2037.50.
You don't want to see $2025.40 taken out. If it is, it doesn't start a downtrend, it just wipes out the chance of an uptrend at this point in time. Should the market be successful and try to lift up from here, well, $2070 – the Bollinger top – is one of the resistance areas and momentum, when you look at it, you're not in overbought territory.
So this market is trying to find its support between the 100-day average in green of $2031.90, the 18-day average of $2037.5.
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.