When we look at the gold market, I had the battle that I wanted, market pulled back to the 18-week moving, average of closes. It's held that at this point, you can see the sideways action that has been going on and in that sideways action, the swing line (and this is a study that I wrote many years ago) here you look to see what the market of the prior bar did.
What's the risk associated with the trend? From that point to take out that low and that would break the uptrend as an example. What's an uptrend? Well, you have to understand the definition, in an uptrend, you have higher lows and higher highs, which you absolutely have.
Then I look at moving averages; how you have a convergence of moving averages. You have the same number practically for the 18-day average and the 100-day average. That's called a bullish convergence right there, now which way is it going to go? You came down today, challenged them perfectly held them, that doesn't mean anything. You got to get through, tomorrow's reports to show what this market's going to do.
If it takes off to the upside, there's a potential that maybe you go to the upper band. If you start cutting through all this. Well, in this market, before you get to that lower band, you have to prove, that you can get through the 200-day average at $2021.80 and gold is going to be looking: What is inflation looking like?
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.