FX.co ★ Trading plan for gold

Massive purchases were seen in metals, currencies, stocks and crypto yesterday, after the release of the latest inflation data in the US. However, during today's European session, there is a deep rebound to the 50% retracement level, which gives opportunities to open new long positions in the market.

Seeing that there is a three-wave pattern (ABC), where wave A represents yesterday's bullish pressure, traders could enter the market by buying from current prices up to the 50% retracement level. Stop loss can be set at 1645, then take profit on the breakdown of 1672 and 1683.

This trading idea is based on the "Price Action" and "Stop Hunting" methods.

Good luck and have a nice day! Don't forget to control the risks.