Risk appetite fell after riots broke out in China due to frustrations on lockdowns. Accordingly, dollar rose against other instruments, including gold.
But following the massive collapse yesterday, gold prices bounced back, giving a good opportunity to sellers to form short positions in the market.
Since there is a three-wave pattern (ABC) in which wave A represents yesterday's bearish pressure, players can enter the market by selling according to the plan shown above. The target is 1614, while stop-loss is 1763.
This trading idea is based on the "Price Action" and "Stop Hunting" methods.
Good luck and have a nice day! Don't forget to control the risks.
