When we take a look together at the gold market, gold is backing off. It is now on the first day of the week, down one percent. Okay, that's interesting as to what it's doing. It is slipping back; you can see how the market came back from here.
As you can see, you got a higher high, lower low pattern on the swing line. You've stayed over the 18-day average of closes, which, for all purposes, $3369.80, just hanging right in there at this point. And the market keeps going and getting thrown back at the upper Bollinger Band, which I teach you over and over here. Now, the narrower this band gets, the bigger the eventual move that comes out of this, and that's what we all have to pay attention to. So it's got to start narrowing in more than this, and that's what I think it's trying to do.
When you look at momentum, you're overbought. So in summation, you have a pattern here of a lower low, a higher high, the market probably destined to fight a battle at the 18-day average of closes, void of a trend at the moment. Bias up and overbought.
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.