Let's take a look at gold and see what it's done. First, it is down 1.63% going into the latter part of os the week now. Okay, and more importantly, it's staying under so far the 18-week moving average up closes, the breakdown hasn't caused any real bounce to speak of. Yes – you get intraday little bounces but this is not a change, is what I'm saying.
The trend is clearly to the downside, the market is now staying under very easily both the 200 and 100-day average. That's a signal things aren't good and now you have to keep your eye on how fast is the 18-day average going to fall to that number.
That is something you've got to keep your eye on as a technician. And you've now got two closes that are underneath the Bollinger Band.
So you've pulled this rubber band a little bit and it can bounce back in here, but I'm looking at the $2023 area as the first resistance point on the chart. You'd have to get over $2047.30 to negate the downtrend and you are oversold. So it fits in at least in my head as a technician that we could get a bounce in the market, to just get to the right-hand side of the Bollinger Band.
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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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