Gold broke off its almost two-month rally ahead of the Fed monetary policy statement next week. It traded at the round level of $ 1,8000 and remained there, which, using Stop Hunting strategy, opens an opportunity to sell in the daily timeframe.
There is also a short impulse apparent in the chart, mainly caused by the pin bar that developed on Thursday.
Considering this, bearish traders can push the price lower if they follow this plan:
Since there is a three-wave pattern (ABC), wherein wave A represents the selling pressure in the market, investors can open short positions in order to set off a 50% retracement from 1806. Place stop loss at 1812, and then take profit on the breakdown of 1794.
This idea follows the framework of Price Action and Stop Hunting methods.
Good luck and have a nice day!
