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Trading idea for Gold

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Worsening relations between United States and China led to another price jump in gold, and the day ended with a strong absorption pattern on the daily chart.

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Price stopped just below 1962, but it may increase even more if we follow the Elliott Wave theory.

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Thus, take profit on the breakout from 1962, as long positions are only profitable until the quote passes yesterday's low.

This follows the strategy of the classic Price Action and Stop Hunting techniques.

Of course, controlling the risk is also important, so as to avoid losing profit.

Good luck and have a nice day!

The material has been provided by InstaForex Company - www.instaforex.com