FX.co ★ Trading idea for gold

Gold grew rapidly last Friday amid disappointing data on US employment. But yesterday the inside bars closed as trading halted because of a holiday - Labor Day in the US and Canada.

This may break the expected collapse in gold, which was projected last August 24.

Currently, the yellow metal is pressured around the round and psychologically important support level - 1800. This suggests that investors can take a closer look at potential bearish scenarios.

Since there is a three-wave pattern (ABC), where wave A represents yesterday's and today's selling pressure, it is recommended to open short positions from 1820 to the 50% Fibonacci retracement level. Set stop loss at 1833, and then take profit on the breakdown of 1800.

This strategy follows both Price Action and Stop Hunting methods.

Good luck and have a nice trading day!