Despite the positive growth in the number of people employed in the US non-agricultural sector and the unchanged unemployment rate, gold traded rather ambiguously last Friday.
The first movement was downward, but the direction changed as soon as traders began to take profit around the sell stops. However, buyers were unable to keep quotes behind a two-day high, so gold closed with a false breakout. This situation paves the way for a further decline in the market.
Given that an Elliot wave has formed (ABC pattern), where wave A represents the selling pressure last Friday, traders can take short positions from current prices up to the 50% retracement level. Set stop loss at 1752 and take profit on the breakdown of 1731.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day!
