It’s a usual quiet Friday market and plenty of time to plan out!
Gold jumped from 1293 to 1305 in a single day. Here’s my take on how I think the price action moves in the next couple of days.
The blue box indicates the pullback zone, breaking above the box will take the price to the upper bound of the downward channel, which is also the 161.8 level of the fibonacci retracement levels. However before the move up there’s a good chance that the price action is going to respect the smaller upward channel (the red dash lines) and bounce to 1297.88 first and then climb back up once more.
I will be setting a pending order to buy at 1297.88 with Take Profit at 1317.46 and Stop Loss at 1289.80.
Finally choose your position size carefully. As you can see the in a larger time frame we are in a downward trend.
All the best and have a good weekend ahead! 🙂