We've got right here, the 18-week moving average of closes. The market is over that and the bias is still up on a weekly basis in the gold market. The high was made two days ago now with $2454.20, an all-time high in the market.
The pattern is still one of higher and lows higher highs – bullish. The market is over the 18-day moving average of closes. So the bias is up in the market, just the way it is on the weekly and the resistance in the market is the upper Bollinger Band. You can see how the market went to it and now you're slipping back a bit.
So tomorrow will determine if you get an embedded reading. Right now view the market as overbought, bullish long term. Corrections can happen, in my opinion, they're still going to be buying opportunities when they show up. The question is, can the market slip $50 or something like that and offer a better way in?
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.