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Trading idea for gold

Trading idea for gold

There have been pretty interesting developments in gold.

1. Gold traded higher amid weak inflation;

2. The yellow metal nearly absorbed all news achievements, creating a so-called "news bubble".

In this bubble, buyers are trapped in the bottom of the momentum, which is also the support level since September 8 - $ 1,780.

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Trading idea for gold

And zooming out, there is a clear three-wave pattern in the chart.

Trading idea for gold

This suggests that it would be best to abandon long positions, at least until there is a false breakdown at $1,780. Instead, investors should take short positions with target at $1,675.

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

Good luck and have a nice day!

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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