Gold prices peaked yesterday, after geopolitical tensions between the US and China, in which Taiwan is involved, escalated. This marked the end of the rebound, and jump-started the move towards the main target of 1675.
Bouncing back to the 50% retracement level created the opportunity to take short positions in the market.
Since the recent movements formed a three-wave (ABC) pattern, where wave A represents the selling pressure yesterday, traders can enter the market by selling up to the 50% retracement level, with stop loss at 1787. Exit the market on the breakdown of 1751 and 1675.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day!
