Gold@ Wave 3 in Wave 3 Combined With Breakout

Gold was moving in descending channel since the beggining of this year with price breaking the resistance of the channel last week. This on its own is a powerfull bullish signal but there is more to add. Counting waves we can see that price is developing wave iii of five of a larger wave 3. When it comes to elliott wave analysis trading wave 3 in a larger wave 3 is perhaps the most powerful setup. Another factor that adds to our long setup is that price tested the broken resistance, now support which tells us that this isn't a fake breakout. This is clear looking at the 1h chart.

As for stoploss i decided to place it below the last swing point of the breakout. Someone could say that it's too tight so another option would be below the support trendline which hold C, 2, ii waves (dotted line in the chart). As for profit target i aimed the 1.618 of wave 1 where price should test a longer term resistance level.

Like and comment,
John.