Technical Analysis of GOLD - October 24, 2024

From a technical standpoint, I see that Gold is currently at a price level worth considering for potential entry points. 

Before we proceed with the analysis, let’s take a look at the 1-hour time frame chart of Gold:

Let’s analyze using Price Action (Trader’s Pressure) analysis. The market trend shows that GOLD remains in a Bullish/Uptrend condition, but we also need to anticipate a possible trend reversal if the price breaks through the Support area above, as well as potential price consolidation.

Looking at the candle history, we can search for opportunities to enter a Buy position. However, to remain objective, I will provide an analysis for both Buy and Sell entries.

If we observe the chart above, the Buyer’s pressure (indicated by the length of the Green candles) is gradually pushing the price upwards without much resistance from the Seller’s pressure (indicated by the length of the Red candles), forming Higher Lows. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities can still be found in the Gold commodity.

On the chart, I’ve identified a Resistance area marked by the lines above the price (2742.15 – 2733.16), and for the Support area, you can see it through two lines below the price (2708.86 – 2700.11).

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

Breakout opportunity setup:

• If the price closes a 1-hour candle above the Upper Limit of the Resistance Area (2742.15), be ready to look for the best Buy entry position.
• If the price closes a 1-hour candle below the Lower Limit of the Support Area (2700.11), be ready to look for the best Sell entry position.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the Resistance area (<2733.16) for Buy entries, and above the Upper Limit of the Support Area (>2708.86) for Stop Loss on Sell entries. Use a minimum risk-reward ratio of 1:1.

Pullback setup for Sell positions:

• Use the Resistance area as the pullback zone. If the 1-hour candle closes within this pullback area, you can take a Sell position and set a Cut Loss if the 1-hour candle closes above the Upper Limit of the Pullback area (>2742.15). Use a minimum risk-reward ratio of 1:1, following your trading strategy.

Pullback setup for Buy positions:

• Use the Support area as the pullback zone. If the 1-hour candle closes within this pullback area, you can take a Buy position and set a Cut Loss if the 1-hour candle closes below the Lower Limit of the Pullback area (<2700.11). Use a minimum risk-reward ratio of 1:1, following your trading strategy.

Always apply proper money management in each trade to maintain healthy trading practices and be cautious of Fake Breakout Candles. 

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

Happy Trading, everyone!

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