It is quite obvious that bearish traders are not strong enough to reverse the two-month bullish trend that gold is in. In fact, a pattern has formed near 1800, which signals that short positions are rather unprofitable at the moment.
The pattern that developed is called a "shockwave", in which the quote falsely broke out of buyers' risk levels.
It is not very ideal to sell in such a situation, at least until there is a false breakout at $ 1800. What traders can do is to open long positions so that a breakout will take place at the above-mentioned level. After that, they can take profit and change into short positions.
All these are under the Price Action and Stop Hunting strategies.
Good luck!
