If you look at gold, we're having our first reasonable correction on a weekly basis. You're almost down three percent — big break. Could the market go back to the 18-week average of closes? it could. Is there anything here saying it has to? No, but that it could do. When you look at what happened here, if you come into this chart action prior to just now, this is what you looked at. It's almost a mini head and shoulder formation. The concept of another shoulder ahead, a mini one. And if you flip it over from $2800, let's say to $2750 for all purposes, maybe you get to the 27 level on the potential of that move. You got a little bit under it and we'll see if you can bounce.
When we look at the swing line and I come back, the game was a little bit different, and here's why it was different. Coming in, gold had a downtrend - lower highs, lower lows. It's certainly what I would have said last night, then it breaks down like that. Where was it? It was at the 18-day average fighting a battle. Gold had come down and the big question is, was this going to hold the market or not? This was our initial objective.
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.