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.
Try Swing Trader’s Insight – for 14 Days
Swing Trader’s Insight – Trial - This swing trading resource is designed to help you improve your trading skills and make you aware of trends and new potential opportunities in the commodities markets. Regardless of your current skill level, access to this exclusive swing trading information will enhance your trading experience.
Swing Trader’s Insight – includes access to premium web content.
Swing Trader’s Insight – includes an email newsletter subscription.
Swing Trader’s Insight – trial lasts 14 days.
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.