STTS Lesson - 16 March 2016


How we'll trade Gold this week - The importance of learning Chart Patterns!
 
In all our recent articles and videos we've been discussing how we want to go Short in Gold. Our Fundamental team are bearish due to a very bearish COT Report analysis.
 
Technically, this is the situation right now, ahead of FOMC which guarantees huge volatility: as we have been saying last few sessions, a Rising Wedge Bearish Reversal pattern has triggered, as the Daily Chart show. This happened on Monday. The short term target for the wedge trade is around 1207$ and if the market gets there, then it's very likely to test the 38.2 Fib level at the 1992 significant level. That's short term. Medium term, given our Fundamental team's view, we would expect the downside to continue further to at least the 50 Fib level which is around 1165$.
                                                                   XAUUSD - Daily
The 1 hr chart shows that since yesterday price has consolidated inside an ascending triangle which is usually a bearish continuation pattern in a downtrend. Price is likely to remain in this pattern for most of today, until the FOMC statement. It is unwise to enter the market using Stops prior to FOMC as the chances of getting stopped out are extremely high! Only very wide stops should be considered.
But it's important to know what to expect so we can react quickly when the time comes.
 
In our opinion the market is likely to do 2 things:

Scenario 1:  The market  will re-test the top of the triangle and the 23.6 Fib above that, it will meet with selling and hopefully we may get a Sell signal in that area (betwwen 1238 and 1240).
                                                                     XAUUSD - 1 hr
Scenario 2:  initial volatility could drive the market to re-test the 38.2 and possibly the 50 Fib levels where we will be looking for sell signals in those areas (1248 and 1255). In this scenario, day traders will probably trade the upside breakout of the triangle with the 38.2 and 50 Fib levels as targets, but given our Fundamenatl and Technical stance, we are going to let the market re-trace and then sell into it.

                                                                     XAUUSD - 1 hr

We will be keeping our STTS Subscribers informed and issue our trading signals accordingly.
 
This article explains how important it is to be able to recognize Chart Patterns and how to apply them to different time frames to devise a trading strategy. All our subsrcibers can learn this patterns from a special video in our Trading Academy which we have opened to the Public just for this week. To watch it ... Click Here.

If you'd like to join the lucky ones receiving real time, accurate and 100% honest and transparent trade signals .... Click Here.
 
Happy Trading!


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