In last night’s edition of Swing Trader’s Insight, gold futures were labeled as a Taylor Trading Technique (TTT) Sell day for today. This morning I updated that call, and I suggested we could look to short on a failed rally above the $1300 pivot point.
For a TTT Sell day, we would normally look for upside follow through, looking for a rally to the previous (TTT Buy day) high. However, as gold is in a down trend, and $1300 is now resistance, a rally that failed to hold above $1300 would likely lead to a resumption of selling, so this morning I suggested we look to short a failure.
June gold pushed above $1300 around 7:50 AM, trading to a session high of 1301.70. By 8:30 it dropped back below 1300, giving us our trigger for a short. We would place our initial stop loss above the 1301.70 high, giving the trade an initial risk of about $230.
Gold trended lower over the session today, and patience with the trade was rewarded, as the market reached a session low of 1292.20 by 1:30 PM.
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