Technical Analysis of GOLD - October 28, 2024

From a technical perspective, I see that the price of Gold has reached a level that offers viable entry points. 

Let’s examine the 1-hour chart of Gold before diving into the analysis:

We’ll analyze using Price Action (Trader’s Pressure) methodology. Currently, Gold remains in a Bullish/Uptrend market, though we should also anticipate a trend reversal if the price breaks through the Support area above and in cases of price consolidation.

Based on candle history, we can spot potential Buy entries, though to be more objective, I’ll provide an analysis for both Buy and Sell entries.

Looking at the chart above, the Buyer pressure (indicated by long green candles) has been gradually pushing the price higher, with Sellers (indicated by red candles) unable to counteract this momentum, forming a series of Higher Lows. This indicates that Buyers still dominate at certain price levels. However, there are also Sell opportunities in Gold.

In the chart, I’ve identified a Resistance area marked by lines above the price (2765.97 – 2757.25) and a Support area with two lines below the price (2734.08 – 2724.61).

Here are my entry setups; feel free to adjust them to match your trading style:

• Breakout Opportunity Setup:

  • If the price closes a 1-hour candle above the upper limit of the Resistance Area (2765.97), prepare to seek the best Buy entry.
  • If the price closes a 1-hour candle below the lower limit of the Support Area (2724.61), prepare to seek the best Sell entry.
  • Set a Stop Loss if the 1-hour candle closes below the lower limit of the Resistance area (<2757.25) for Buy entries, and above the upper limit of the Support Area (>2734.08) for Sell entries. Aim for a minimum 1:1 risk-to-reward ratio.

• Pullback Setup for a Sell Position:

  • Use the Resistance area as a Pullback zone. If the 1-hour candle closes within this pullback area, you can consider a Sell entry and set a Stop Loss if the 1-hour candle closes above the upper limit of the pullback area (>2765.97). Aim for a minimum 1:1 risk-to-reward ratio based on your trading approach.

• Pullback Setup for a Buy Position:

  • Use the Support area as a Pullback zone. If the 1-hour candle closes within this pullback area, you can consider a Buy entry and set a Stop Loss if the 1-hour candle closes below the lower limit of the pullback area (<2724.61). Aim for a minimum 1:1 risk-to-reward ratio based on your trading approach.

Make sure to use solid money management for each entry to support sustainable trading, and stay alert to potential Fake Breakout candles.

I hope this analysis can be a useful reference for your market analysis. 

Happy Trading, everyone!

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