Hi, dear traders! Let ne share a trading idea for gold with you.
In essence, gold remains under selling pressure during American sessions. The fundamental reason for selling gold is the cycle of the Fed's aggressive monetary tightening. The price has already updated fresh lows of 2021. The next global target is seen at the level formed in 2019. I mean the level of $1,445.
Closing on Friday, gold formed a pin bar, indicating a slowdown in the upward correction of the last week. The upward correction will be followed by another round of selling.
I offer the bearish trading idea according to the following scheme.
In fact, we've got a three-wave ABC structure where the selling impulse of Friday serves as wave A.
I suggest we consider short positions from the 50% Fibonacci retracement under the scheme presented on the above chart.
We could set a stop loss at 1,674 and could take a profit at a breakout of the following levels:
1. 1,658
2. 1,640
3. 1,614
4. 1,447
The trading idea is developed under the Price Action method and the Stop Hunting strategy. Good luck in trading! Make sure you manage your risks!