FX.co ★ Trading idea for gold

Gold failed to stay above the psychological level - $ 1,800. Now it is approaching $ 1,781 for the fourth time, putting pressure around the level. In most cases, this scenario ends in a breakdown. So, it is better to take short positions instead of long ones.

In the event of a true breakdown, a wave of sales may provoke a further drop to $ 1675.

If that happens, gold could get a potential rebound of as much as 11,000 pips.

After the breakdown of $1781, it is recommended to leave some of the positions up to $ 1675.

This analysis is based on Price Action and Stop Hunting strategies.

Good luck and have a nice day!