When you look at gold on a weekly basis, and this is just a chart of closes, you can see the market really hasn't given up very much when you look at it visually. When you look at a bar chart, on a daily bar chart, the market hasn't been able to get over these highs. It's rallied back, and it just seems to be in here. Could be a big consolidation that is going on, I can't argue that. You're not trending. On a short-term basis, you have a higher high and a lower low — that is not a trend.
When we take a look at the gold in the momentum, I can see why it's backing off. It got overbought, and it's correcting the overbought condition. Both numbers are no longer over 70, it's out of overbought. So I think the market's going to fight its battle right now, looking for direction here.
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.