Gold was moving in descending channel since the beginning of this year with price breaking the resistance of the channel last week. This on its own is a power full 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 elliot 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 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). Profit target the 1.618 of wave 1 where price should test a longer term resistance level.
