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-- Posted Friday, 18 June 2010 | | Source: GoldSeek.com
Gold continue to move higher and thankfully those who get my twice daily Oral and
Written updates are in the move. Spain is in the news over potential sovereign debt issues. Thought the Spanish Government denies it as do European Central Bankers, the rumor mill has it that some of the recent funds put in the Rescue Fund may be getting ready to be tapped. I don’t see where this really matters, as that is what the funds was created for. In addition, Spain is still able to see its debt, even though the rates paid by Spain are substantially more than that paid to own a German Bund. The Dollar Index has been selling off the past week as the Eurocurrency and Swiss Franc have continued to rally. The break in the Dollar has proven supportive to gold and commodity markets in general. Gold today hit what I term a “key” resistance point. I think some sideways action will soon develop if prices are to embark to the $1300 price level. More importantly, other than for technical action, there seems little reason to expect to see large breaks in gold given the current fundamentals. Below is a Daily Chart of June Gold. Each individual bar on the chart represents one day of trading. In “red” I have plotted the 18-Day Moving Average of Closing Prices, in “dark blue” the Swingline Study and the “black dashed line” is the Bollinger Band Study. The dark blue line on the chart below is the Swingline Study. It is in a portraying a bullish pattern, one where the price apexes are of higher highs and higher lows. Yes prices as of this writing haven’t yet exceeded the most recent high of 1254.5, but nor have prices backed off. Rather, the market today stalled as expected, against the resistance of the Bollinger Band Top of 1251.3. I expect prices to try to develop a base to work even higher from. However at this moment the combination of the Slow Stochastic Study, the bottom graph on the chart below, being in an overbought status with a reading of 74.89 and prices having hit the Bollinger Band Top, which I’ve circled above were enough for me to recommend to my customers who bought via my Twice Daily Recommendation at 1221 to take full profit today on that purchase. The profit if you followed my recommendation was approximately $30 an ounce today. 
Support is back at the 18-Day Moving Average of Closing Prices, 1223.6, the red line on the above chart. Slow Stochastics however are in a place where they have to do something. They can either embed, which means both the red and brown lines get over 80 which implies the market gets even stronger or they can correct enough to lose their overbought status. Until they do one of the two, I am simply an observer, but one ready to pounce on the long side when given reason.
The weekly chart is more bullish than the daily one, at least technically speaking. The bottom graph on the above chart displays the Slow Stochastic Study, which at this time is embedded. This implies to me that until the red line that makes the study up, the “K” line with a current reading of 89.2 closes back under 70.00, that upside momentum should continue which should pull prices higher. The trend of the Swingline, displayed as the “blue line” which is plotted over the daily chart bars, currently has a pattern of “higher highs and higher lows”. That my friend is the definition of an uptrend. Last, the most recent high of 1252.1 on this chart is higher than the previous high.
I update and put my specific recommendations in my Twice Daily Oral and Written Updates. That is where buy, sell, stop and price objective recommendation are made. This past Sunday evening, I issued a signal to go long August Mini Gold at 1221 with a tight stop of 1216.1. I mention this since I had been waiting a while for a chart buy signal to be issued. Once I saw the pattern, I published in my Written and Oral Update on Sunday Evening and told my followers what to do. Clients that have access to and follow my recommendations could have gone long at 1221 and taken final profit today, against 1251.5 which was the price I published last night to take final profit at. Those that did so took a final profit of approximately $30 profit per contract. I say final because I teach traders to trade more than one contract per trade. There are many reasons I have for this and all are covered in my trading course, The Futures Academy. In any case, the first unit of the two was taken off at just over $9 in profit per ounce. The above is not meant to be my track record nor part of one. Rather, the point being made here is to show the importance of having access to my twice daily updates since things can and do change in gold rather quickly. It is in these updates that I state losses as well as profits, move stop orders and profit objectives around. I am bullish and still have the $1300 in sight as a target. I do not think the Dollar is going to return in the near term to its recent high. In fact, the better world economies do and the better the Eurozone defends sovereign debt the more bullish I become on gold. It would not surprise me to get another signal soon. Be sure you’re on our update list. You can subscribe by clicking here. The key to keeping up with my trade recommendations is through my Twice Daily Written and Oral Updates. That is where I put out specific trade recommendations with updates to them. Not in my Gold Report since I can update my daily reports twice a day but am limited in a weekly report to but once a week. If you are not or have not had access to Ira’s Twice Daily Oral or Written Updates, you can easily be added to our phone and e-mail list for a trial period by calling us at 1 866-973-2077. If you have had access, simply go to: http://iraepstein.linngroup.com/delayed-trade-recommendation2/oral-update-service.html to subscribe. We allow both clients and not client subscriptions. Prices differ as clients receive a 50% discount. Futures Trading Kit and Twice Daily Updates If you haven’t received our Futures Trading Kit, you should. The Kit contains access to: Live Chart Data, Charts, Quotes, Technical Chart Studies, Videos that talk about trading techniques, money management tools, access to our Daily Market Research along with our proprietary electronic trading booklets and much more. Best of all, it’s FREE to experience Simply call to receive your of our Futures Trading Kit. It’s your FREE Trial to our market information and other trading tools. Just call 1-866-973-2077. Disclaimer: This publication is strictly the opinion of its writer and is intended solely for informative purposes and is not to be construed, under any circumstances, by implication or otherwise, as an offer to sell or a solicitation to buy or trade in any commodities or securities herein named. Information is taken from sources believed to be reliable, but is in no way guaranteed. Chart data is courtesy of LGP-IraCharts. No guarantee of any kind is implied or possible where projections of future conditions are attempted. Futures and Options on Futures trading involve risk. In no event should the content of this market letter be construed as an express or implied promise, guarantee or implication by or from The Ira Epstein Division of The Linn Group, Inc or The Linn Group, Inc. that you will profit or that losses can or will be limited in any manner whatsoever. No such promises, guarantees or implications are given. Past results are not indicative of future performance.
-- Posted Friday, 18 June 2010 | Digg This Article | Source: GoldSeek.com
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