So the market had come down back here, fought a battle where it was trying to hold that 18-week average. And is now back up on a closing basis, to the all-time high closing price. Not bad action, that pull back to what I call that 'line in the sand' did its job of holding.
When you take a look at the chart action, it's come up. And as I've said, you're back into a resistance area right here. Been here, done that before. The trend is up, the swing line is up now. You had a huge outside day to the upside. So that's what's called a continuation pattern, why? Because you've already had the swing line up and when you get that, it's a continuation. If today's low is taken out on Wednesday or Thursday, it would be a very negative sign. It would, to me mean, the market wants to fall back and very likely back into the 18-day average of closes, wherever that comes in. Where's the resistance in the market? Well it's at the upper Bollinger Band.
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.