Technically, I see that Gold has reached a price level that presents a promising entry opportunity.
Let's first review the 1-hour timeframe chart of Gold before diving into the analysis:
Using Price Action analysis (Trader Pressure), we observe that Gold is still in a Bullish/Uptrend. However, we must anticipate a potential trend reversal if the price breaks through the Support area or consolidates.
Candle History and Market Sentiment:
Looking at the candle history, we can spot Buy entry opportunities, but for an objective analysis, I'll present both Buy and Sell setups.
From the chart, we see that Buyer's pressure (long green candles) has been gradually pushing the price upward, overcoming Seller's pressure (long red candles), and forming Higher Lows. This indicates that Buyers still dominate certain price levels. However, Sell opportunities can still be found in Gold.
Key Levels:
- Resistance Area: Marked by the lines above the price at 2756.73 – 2746.03.
- Support Area: Marked by the lines below the price at 2721.25 – 2710.56.
Entry Setup Options
You can adjust these setups to fit your trading style:
Breakout Opportunity Setup:
- Entry Buy: If the 1-hour candle closes above the Upper Resistance Area limit (2756.73), be prepared to find the best Buy entry.
- Entry Sell: If the 1-hour candle closes below the Lower Support Area limit (2710.56), be prepared to find the best Sell entry.
- Cut Loss: For Buy entries, execute a Cut Loss if the 1-hour candle closes below the lower limit of the resistance area (<2746.03). For Sell entries, set a Stop Loss if the candle closes above the upper limit of the support area (>2721.25). Maintain a risk ratio of at least 1:1.
Pullback Setup for Sell Position:
- Use the resistance area for pullback. If the 1-hour candle closes within the pullback area, consider a Sell entry. Set a Cut Loss if the 1-hour candle closes above the upper limit of the pullback area (>2756.73). Apply a minimum 1:1 risk ratio.
Pullback Setup for Buy Position:
- Use the support area for pullback. If the 1-hour candle closes within the pullback area, consider a Buy entry. Set a Cut Loss if the 1-hour candle closes below the lower limit of the pullback area (<2710.56). Apply a minimum 1:1 risk ratio.
Always use proper money management with each entry to ensure sustainable trading, and be cautious of Fake Breakout Candles.
Hopefully, this article serves as a useful reference for your market analysis.
Happy Trading!