When you look at the gold market, it's down about 1% for the week. That's not so bad on a weekly chart. It's still got this pattern where it came down and it stepped down on the chart. The pattern is one of a lower low and a higher high. So there is no trend by the definition of lower highs lower lows, being a downtrend or higher highs, higher lows being an uptrend. You don't have that going.
The battleground is crystal clear, It's the 18-day average of closes. That's the resistance point. The support has been in holding basically at the lower Bollinger Band and the market is oversold. As long as you're over this 18-day average, gold is stronger than silver. Unlike gold, silver is in a downtrend and could even embed. That could get even weaker as time goes on.
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.