Now, as we look at the gold market, one of the things I've been telling you on a continuation chart and this is a weekly chart of closes. I was looking to see if the market would get back to the 18-day average of closes and what it did there. It's taken a heck of a long time but it has finally occurred. So right in front of CPI, I think this is an event that you got to keep your eye on.
When we take a look at the daily charts, there's nothing friendly on this market; it's still gradually easing down. The pattern is one of overall, lower highs, and lower lows – you're under the 18-day average so, the next support in the markets is to 200[-day average], then the 100-day average along with the Bollinger Band bottoms. Now, look at how they all come together here, that sort of $2023.5 - $2026 area. This is your big support.
That does not mean that I'm saying go out and buy it. It does mean that if you were short, I'd be telling you, yes you want to cover short positions in front of the CPI, if you were my client.
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.