When we take a look at gold, any way you want to cut it, when I was telling you I expected the market to at least try to hold the 18-week average of closes. You can say what you want, it did a nice job of it. Now, what we've got here is a break of size and you're getting a bounce. It's not uncommon to get a 30 to 50 percent bounce. If it goes straight up beyond 66 percent, then you've got something else going on.
As I look at the market, you still have the pattern of lower highs, lower lows. The resistance is, as I see it's $2680 and a half. The support showed itself at the 100-day moving average of closes. And the Bollinger Bands, which it was riding down to that number, and is now bounced away. The bears are still in control, is the point that I'm making.
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.