As you know, I've been pointing out to you that I thought this market was going to fight a battle at the 18-week average. If we come back just a little bit here, and we can do this, you can see for the weekend of December 27th, the market was under it. And as we now come back, we're literally fighting right at this number. We're over it by 20 points, so it's back and forth right at these key numbers.
When we look at the gold market, it tried the downside. Is this now defining that the $2600 level is a bottom? That's going to be the big question.
The swing line's not doing it: you have a lower low and a higher high...
In terms of Bollinger Bands, they're pretty far away. I would call them not in play, at this point in time. You'd have to have excessive moves to put them there, and momentum is turning up. So you have the bias up since the market's over the 18-day average. The support becomes, now, what the resistance was...$2663 to $2658 is the support. You don't want to get underneath this low, and you've opened the door to possibly get back to the $2735 level, the upper Bollinger Band, if a trend kicks in.
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.