Gold has come back to challenge the 18-day average of closes. The market is still very much caught, though, in trading ranges. I view the real range, having been from there to there. And all you did is you came up and challenged that high, you could go for that low area. But that's where I see it. The trend of gold, temporarily, is to the downside. The market is underneath the 18-day average of closes in red. The green number is the 100-day average, so it's been trading in between that for well over a week at this point. If the market breaks down from there, the $3330 level is the next support zone. To get anything going bullish, it'll take more than one day. I mean, you have the upper Bollinger Band, but you can't just turn the market into getting a pattern of higher lows, higher highs. The trick will be, can you even get over the 18-day average of closes?
In terms of momentum, you're already in oversold territory, with a reading under 30. I consider any reading in the slow stochastics under 30 as being oversold. So I don't think you're getting new deployment of short money in a big manner.
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.