If we look at the gold, the big question, and I mentioned that yesterday: will this break be able to carry to the 18-week average of closes? Or is it going to again make an attempt like it's getting to it and turn itself back up?
If you take a look at the chart action here, you've really gone nowhere in a very long period of time. It's just short-term waves like that. Not really going one way or the other. The swing line today has now got higher lows and higher highs.
That's why I say, the market turned up, you get to see that here and notice the battleground, the $2076 ground, the 18-day average, it closes, we're staying there, we've come down a couple of times to the 200- day average, not the 100[-day average] we've held it and we haven't gone to a Bollinger Band bottom yet at all.
Rather, the market is sitting here over the 18-day average and the next resistance back into the $2072 level, In terms of momentum, we've had a correction that's gone flat so I'm back in the friendly camp until you take out the lows right through here. And specifically that low would be, I'll give you a number right now: $2030.80. So you have to hit $2030.70 to negate the attempt at being bullish.
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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