Gold prices went down, after rallying quite strongly from January 7 to January 12.
Now, the key level is 1812 because its false breakdown could prompt another increase in the market.
Considering that there is a three-wave pattern (ABC), where wave A is the representation of the buying pressure last December 7 to 12, investors can take long positions up to the 61.8% and 50% retracement levels of 1812. Set stop loss at 1790, and take profit on the breakdown of 1831.
This strategy is based from price action and stop hunting methods.
Good luck and have a nice day!
The material has been provided by InstaForex Company – www.instaforex.com