When we look at gold, you can see the market is staying over the 18-week average of closes. So, for better or worse? The trend is up, and the bias is up at this point. Here we are with the market trying to climb, and here's why the trend is up: The swing line has higher lows and higher highs.
Number two, the market is over the 18- and now the 100-day average. To get really bullish, this is what you want to see. You want to see in my opinion, the 18-day swing around and get back over the 100-day average. That could set the market up to these levels. What would do that? Fear of inflation.
Where could the market go? As I told you, I don't think it's going very far on this run. I expect the upper Bollinger Band to act as a break on wherever it does. I said I thought this would fall, and It's coming in from the current quote where you're at right now, $12 higher, you run right into that number. What's the magic of the number? It normally stops the market, but it stops it in a good way when you're going sideways. So let's see if that's going to be the case.
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.