Technical Analysis of GOLD - October 21, 2024

From a technical perspective, I observe that Gold has reached a price level that is still worth considering for potential entry points. 

Let's take a look at the 1-hour time frame Gold chart below before analyzing further:

Using Price Action analysis (Trader Pressure), it is clear that the market trend for GOLD remains Bullish/Uptrend. However, we should also anticipate a potential trend reversal if the price breaks through the Support area above or if there is price consolidation.

Looking at the candle history, we can find opportunities for Buy entries, but to stay objective, I will present an analysis for both Buy and Sell entry points.

As seen in the chart above, Buyer pressure (long green candles) is gradually pushing the price higher without significant resistance from Seller pressure (long red candles), forming a Higher Low. This indicates that Buyers still dominate the formation of certain price levels. However, Sell opportunities can still be found in GOLD.

In the chart, I have marked the Resistance area with lines above the current price (2744.55 – 2734.27), and for the Support area, we can observe the two lines below the current price (2709.74 – 2700.36).

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

1. Breakout Opportunity Setup:

   • If the 1-hour candle closes above the Upper Resistance Area (2744.55), prepare to look for the best Buy entry position.
   • If the 1-hour candle closes below the Lower Support Area (2700.36), prepare to look for the best Sell entry position.
   • Set a Stop Loss if the 1-hour candle closes below the lower limit of the resistance area (<2734.27) for Buy entries, and above the Upper Support Area (>2709.74) for Sell entry Stop Loss. Use a minimum risk ratio of 1:1.

2. Pullback Setup for Sell Position:

   • Use the resistance area for pullbacks. If the 1-hour candle closes within the pullback area, you can enter a Sell position and set a Stop Loss if the 1-hour candle closes above the upper pullback limit (>2744.55). Use a minimum risk ratio of 1:1, based on your trading method.

3. Pullback Setup for Buy Position:

   • Use the support area for pullbacks. If the 1-hour candle closes within the pullback area, you can enter a Buy position and set a Stop Loss if the 1-hour candle closes below the lower pullback limit (<2700.36). Use a minimum risk ratio of 1:1, based on your trading method.

Always practice good money management with each entry to ensure sustainable and healthy trading. Stay alert for Fake Breakout Candles.

I hope this article serves as a useful reference for your market analysis.

Happy Trading, everyone!

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