As we take a look at gold, it's still up 0.66%, $15.5 for the week. When we look at the daily bar chart, we're in a distribution area again. Now, let me explain that; it still has the pattern of higher lows that have been in place but suddenly you have a high here and a peak here, it has a lower high.
So like a triangle, you're dropping there and then the bottom comes in. You form a wedge and that's what this market is doing now – and it's trying to figure out what its next move will be.
In terms of moving averages, you're still over the 18-day moving average of closes. To get down there right now you'd have to break the uptrend and turn into a downtrend. But remember, when I have the bias up and I define bias as the relationship of the current price to the 18-day average. When the market is over this, even if I got sell signals on the swing line, I avoid them because it's most likely a corrective move back to regroup against that average.
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.