Hi, dear traders!Let me share my trading idea for gold. Gold closed yesterday with a daily bearish engulfing that is viewed as a clear-cut signal of a further bearish trend. The metal closed the New York trade also with losses. Today the gold market remains under selling pressure extending yesterday's American sell-offs.
Notably, since May 3, the buyers have set stop losses of the buyers entirely above $1,850. Indeed,they have no other option to restrict losses. Now I suggest we consider the following sell scenario.
We could try to enter the market with short positions at about $1,843, the level of yesterday'sAmerican trade. Selling gold, I would advise you to set a stop loss at the swing high of yesterday's American session which is above $1,870. Besides, we could plan profit-taking after a breakout of a weekly low at $1,850.
The trading idea is developed according to the author's methods known as Price Action andHunting for stop orders. Good luck in trading! Make sure you control your risks!
