Friday June 16, 2017 09:21
Veteran futures trader Ira Epstein says “gold is attempting to bottom out.” Prices peaked in 2011 and are now in a consolidation phase, says the director of the Ira Epstein division of Linn & Associates. “The current triangle formation shows a market with prices narrowing in, made up of well-defined uptrend and downtrend lines,” he says. Epstein follows the 18-month moving average of closes, which he says does a good job of defining both support and resistance levels. “I think longer-term traders are buying right here, against the 18-month moving average of closes and will likely risk their trade to just under $1,214.30, the most recent swingline low,” he says. “If prices get under $1,214.30, the downtrend will be back in place and a move down to the lower Bollinger band of $1,131 is possible.”
By Allen Sykora of Kitco News
