Technical Analysis of GOLD – October 7, 2024

Technically, I see that Gold has reached a price position worth considering for potential entry points. Let's take a look at the 1-hour time frame Gold chart below before diving into the analysis:

Let’s analyze using Price Action (Trader Pressure). In the current market trend, Gold appears to be in a Bullish/Uptrend condition. However, we must also be cautious of a trend reversal if the price breaks through the Support area above, as well as price consolidation.

From the candle history, we can look for Buy entry opportunities, but to remain objective, I will provide an analysis for both Buy and Sell entries.

Looking at the chart above, the Buyers' pressure (long green candles) gradually raises the price without significant resistance from the Sellers' 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 this Gold commodity.

On the chart, I've marked the Resistance area using lines above the price (2663.56 – 2657.39), while the Support area can be observed with two lines below the price (2640.12 – 2634.45).

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

1. Breakout opportunity setup:

   • If the price closes a 1-hour candle above the Upper Resistance Area (2663.56), prepare to look for the best Buy entry position.
   • If the price closes a 1-hour candle below the Lower Support Area (2634.45), prepare to look for the best Sell entry position.
   • Set a stop loss if the price closes a 1-hour candle below the lower resistance area (<2657.39) for Buy entries, and above the Upper Support Area (>2640.12) for Sell entries. Maintain a minimum risk-reward ratio of 1:1.

2. Pullback setup for Sell position:

   • The Pullback area is defined by the resistance zone. If the 1-hour candle closes within the pullback area, you can take a Sell position and set a stop loss if the candle closes above the upper limit of the pullback area (>2663.56). Use a risk-reward ratio of at least 1:1 according to your trading style.

3. Pullback setup for Buy position:

   • The Pullback area is defined by the support zone. If the 1-hour candle closes within the pullback area, you can take a Buy position and set a stop loss if the candle closes below the lower limit of the pullback area (<2634.45). Again, use a risk-reward ratio of at least 1:1 according to your trading style.

Always implement proper money management in every entry to ensure sustainable trading, and remain vigilant for potential Fake Breakout Candles.

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

Happy Trading, everyone!

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