From a technical perspective, I see that the Gold commodity has reached a price position that is still worth considering for potential entry points.
Let’s take a look at the 1-hour time frame Gold chart below before we begin the analysis:
We’ll analyze using Price Action (Trader Pressure) analysis. In the current market trend, GOLD is still in a Bullish/Uptrend condition. However, we must also anticipate a trend reversal if the price breaks through the Support area above or during price consolidation.
In the chart, I have identified the Resistance area through lines above the price (2744.55 – 2734.27), and for the Support area, we can see two lines below the price (2709.74 – 2700.36).
Here are my setup entry options, which can be adjusted to match your trading style:
Breakout Opportunity Setup:
- If the 1-hour candle closes above the Upper Resistance Area (2744.55), get ready to search for the best Buy entry position.
- If the 1-hour candle closes below the Lower Support Area (2700.36), prepare to find the best Sell entry position.
- Set your Cut Loss if the 1-hour candle closes below the lower boundary of the resistance area (<2734.27) for Buy entries, and above the upper boundary of the support area (>2709.74) for Stop Loss on Sell entries. Ensure a minimum risk ratio of 1:1.
Pullback Setup for Sell Positions:
- Use the resistance area for the pullback. If the 1-hour candle closes within the pullback area, you can take a Sell position. Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2744.55). Use a minimum risk ratio of 1:1 in line with your trading strategy.
Pullback Setup for Buy Positions:
- Use the support area for the pullback. If the 1-hour candle closes within the pullback area, you can take a Buy position. Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2700.36). Use a minimum risk ratio of 1:1 in line with your trading strategy.
Happy Trading, everyone!