As we take a look at gold, it still hasn't even come back to the 18-week moving average of closes. Frankly, it hasn't done it since the fall. I can make an argument that it's about to do that. I don't have a problem with that.
I can see the action here isn't friendly; the market's got a pattern of a higher high and a lower low. It's trying to fight a battle between the 18-day average which it gave up today. Finally. This is today, finally gave it up.
It didn't even do that on Friday and that puts into play the possibility of getting to the 200-day average and the 100 and long with the Bollinger Band. So there's a lot of support under the market right there.
Obviously, what traders are looking for as a reason to give the Fed to start backing off on interest rates, and at that point the gold market probably finds better footing.
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.