For Traders

Analytical Reviews

Technical analysis

07.09.202111:36 Forex Analysis & Reviews: Trading idea for gold

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

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!

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.