Technical Analysis of GOLD for October 18, 2024

From a technical perspective, I see that the Gold commodity has entered a price range that is worth considering for potential entry points. 

Let's take a look at the 1-hour time frame Gold chart below before diving into the analysis:

We will analyze using Price Action (Trader Pressure). In the current market trend, GOLD still appears to be in a bullish or uptrend condition. However, we must also anticipate a trend reversal if the price breaks the support area above or experiences price consolidation.

Looking at the candle history, we can spot potential buy entry opportunities. However, to be more objective, I will provide an analysis for both buy and sell entries. If we examine the chart above, the buyer's pressure (long green candles) is gradually pushing the price higher without much resistance from the seller's pressure (long red candles), creating higher lows. This indicates that buyers are still dominating the formation of certain price levels. However, sell opportunities can still be found within this Gold commodity.

In the chart, I have identified a resistance area marked by lines above the current price (2728.37 – 2718.41), and for support, we can see two lines below the current price (2693.49 – 2684.03).

Here are my entry setup options, which you can adapt to your trading style:

Breakout Opportunity Setup:

• If the price closes above the upper boundary of the resistance area (2728.37) on a 1-hour candle, be ready to look for the best buy entry.
• If the price closes below the lower boundary of the support area (2684.03) on a 1-hour candle, be ready to look for the best sell entry.
• Set a cut loss if the price closes below the lower boundary of the resistance area (<2718.41) for buy entries, and above the upper boundary of the support area (>2693.49) for stop-loss on sell entries. Apply a minimum risk ratio of 1:1.

Pullback Setup for Sell Positions:

• Use the resistance area for pullback setups. If the price closes within the pullback area on a 1-hour candle, you can take a sell position and cut losses if the price closes above the upper boundary of the pullback area (>2728.37). Use a minimum risk ratio of 1:1 according to your trading strategy.

Pullback Setup for Buy Positions:

• Use the support area for pullback setups. If the price closes within the pullback area on a 1-hour candle, you can take a buy position and cut losses if the price closes below the lower boundary of the pullback area (<2684.03). Use a minimum risk ratio of 1:1 according to your trading strategy.

Always maintain good money management for healthy trading practices, and stay alert for potential fake breakout candles.

I hope this article can serve as a reference for your market analysis. 

Happy Trading, everyone!

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