You can see how the market has stayed over this 18-week average and as long as it does that, you should have an upside bias to the market and you do. I think the $2600 is attainable. Well, not that far away; you hit the $2550 level already. The market's got a run going of higher lows, and higher highs – the definition of an uptrend.
So what is the market saying? Well, the market is saying a weak dollar and probably low U.S. interest rates or lower are coming. For that reason, without inflation crumbling away, gold could be something to buy.
The market is fighting at the upper Bollinger Band, which is an area you can get a correction from. So if it corrects, I'm looking for prices to find support around $2475 and you are overbought. What that means is your overbought spending a lot of energy up here, doesn't mean you can't go higher, but the odds of staying over that Bollinger Band are five percent of the time.
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.