When we take a weekly chart of gold closes only, I put on it the 18-week moving average of closes in the market's over. So my bias to the market, when I'm over that number on a closing basis, is bullish. When I'm under, I'm bearish.
Why is that important? Because I take my other signals and this is a filter that if I have a cell signal says, "hey, go with it" or "a buy signal, go with it." Then I take a look at the daily buyer chart. So if we take a look at the daily bar chart, the market was capped to $2150, the correction low back into the $1990 area, and you've made a good $50 correction.
Well, this is still very much an uptrend unless and until the market wants to get back under $2065.10. Where's the resistance? Well, it's not one of these moving averages. Here's the 18-day average. This is the 200-[day average] and that is the 100-[day average]. So it's not those, which means it's probably a Bollinger Band. And that number is right here and you tell me where that market's going up to and where it's fighting its battle.
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.