Gold is currently trading in a horizontal channel, with a fairly clear lower limit at 1790. Apparently, price pulled back 50% after a strong selling pressure last weekend and yesterday.
Considering this, it is ideal to open short positions and follow this plan:
Since there is a three-wave pattern (ABC) in gold, where wave A represents the selling pressure in the market, investors could sell the yellow metal to provoke another 50% pull back from the current prices. Set stop loss at 1826, and then take profit on the breakdown of 1790.
This plan follows the framework of Price Action and Stop Hunting strategies.
Good luck and have a good trading day!
