When we look at the gold market, you can see how you came up and you fell back right here. For the month, because this is the monthly chart on a closing basis, you're down four-tenths of a percent or a dollar. When you look at the weekly chart, you are actually up nearly two-thirds of a percentage point and up $17, even though you gave a lot up on Friday. When we look at the weekly chart, I think you can look at the spike here, the break there, and you're caught right in this.
Okay, but when I put on my swing line, I have a pattern that's sort of interesting too. I do have higher lows and higher highs. So until the market takes this out, last week's low, what do you want to be? Defensive. If it takes out last week's low, then where's the market go? And why am I targeting that? Because last week's low at $2617 and a half, the 18-week average is $26-28 roughly - that's where the support is. Take that out and you open the door up for the lower Bollinger Band, doesn't have to go there, but you open the door for it. Right now, the bulls are trying to defend their bullish position. As I think right here, not allowing the market to get much away from the $2618 level - let's call that.
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.