What we've done is we've pulled back and this is just a closing basis and you can see where the market is as long as you stay over the 18-week moving average of closes – this is a weekly chart – bias up bias is key. We have gone in two levels to the downside. That doesn't mean you can't go to another level down, but you keep your eye on this right now, because you're void of a trend; you have a higher high, you have a lower low.
The gold market is staying underneath the 18-day average of closes. In order for the market to turn bullish at least I need to see a close over the 18-day average of $2348.60. Until that happens. I'm looking at a market void of a trend to support did come in and the break stopped against the Bollinger Band.
Remember: the Bollinger Bands in algorithm is designed to keep the market trading within it 95% of the time. You want the market to hit it. If you want to 100% on the variables, what would happen? You never hit it. Why put it on the chart? But when you hit it up or down, it's a theoretical resistance zone.
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.