When we look at the gold market, we can see that if the market finished right here, it's an all-time high close on a weekly basis. So, as I said, the Market's acting pretty darn good. When you come over to the chart here, you had this big reversal day, two days ago. The question is, can the market get through that or was that a pause in the momentum? Generally speaking, that type of formation is a pause. You get higher lows and higher highs; you're still in the bull can. The market is at this point staying over the 18-day average of closes.
Support would come in, I think if it went down there at the $2693 level. The resistance is pretty crystal clear it's the upper Bollinger Band...and the momentum, this is what you got to keep your eye on now. You cannot count today, because today, we don't know where it'll finish. But we can certainly go on... Both numbers were over and the day before, you have what's called the embedded reading. This means, on this pullback until the red line closes underneath 79, I say that the trade is buying the market and looking to attack the Bollinger Band again and that could be $30/40 from this area, so it's something to watch.
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.