FX.co ★ Trading tips for gold

Gold ended last week with a massive absorption, which opened the opportunity for traders to close positions around $ 1675. This level is not only a technical support level, but also the level where buyers have placed their stop orders in the medium term.

The movement formed a W pattern, and has pinpointed a good target price in the form of buy stop orders in the medium term.

The absorption at W1 represents a smooth decrease in the four-hour (H4) timeframe.

Considering that gold formed a three-wave pattern (ABC) where wave A represents the selling pressure last week, traders can enter the market by selling from the current prices up to the 61.8% and 50% retracement levels. Set stop loss at 1800 and exit the market after the breakdown of 1675.

The trading idea was based on the "Price Action" and "Stop Hunting" methods.

Good luck and have a nice day!