STTS Lesson - 2 March 2016

As you know we issued a SELL Limit Order overnight which did not trigger due to insufficient retracement. We have since cancelled that order because the short term premises for the signal are no longer there.
We are still looking to go Short though and here's why:
As per our Daily Reports, Gold is inside a Pennant which is Bullish if in an uptrend. Price is now in the middle of the pennant and about to break out.
Our Fundamental team expect a major correction largely due to a bearish COT report ( Click Here to see latest Weekly Fundamental Report).
Technically we notice the bearish pin bars  appearing the last 2 times price tested the top of the Pennant. This shows more resolute Selling than Buying at the extremities of this consolidation.
                                                                    XAUUSD - Daily
As a result of the above analysis of the daily Chart we are therefore more likely to go Short than Long in expectation of a breakout. If Short, the targets will be the 38.2 and 50 Fib levels of the recent uptrend off the Dec 2015 bottom.
So we are now looking for a signal to Sell in the lower time frames to try and catch this breakout at the earliest possible stage. The 1 hr time frame shows the short term EMA crossing the medium term EMA to the downside yesterday and as we type the former is about to re-test the latter.
                                                                    XAUUSD - 1hr
If we get a Sell signal in this area intraday today, we will issue an STTS signal to our Subscribers.
Happy Trading!

NB: The above scenarios are only what we at TFF believe have a high probability of success. There are no guarantees and past performance is NOT an indication of future performance. If you choose to trade, do so at your own risk and never risk money you are not prepared to lose. Before placing any trade, we strongly recommend you watch our Risk Management Video, in conjunction with reading our Disclaimer.