Technical Analysis of GOLD – November 21, 2024

From a technical perspective, Gold is currently trading at a price level worth considering for potential entry points. 

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

Using the Price Action Analysis (Trader Pressure) approach, Gold appears to maintain a bullish/uptrend market condition. However, we should also anticipate a potential trend reversal if the price breaks the above support area or consolidates further.

By observing the candlestick history, we can identify potential buy entry opportunities. However, to remain objective, I’ll provide both buy and sell entry setups.

From the chart above, we can observe that buyer pressure (long green candles) is gradually driving the price higher, while the sellers' attempts (red candles) are insufficient to counter this movement, forming higher lows. This indicates that buyers continue to dominate the formation of certain price levels. Nevertheless, sell opportunities can still arise in Gold trading.

On the chart:

• Resistance Area: Marked by lines above the price (2681.92 – 2670.53).
• Support Area: Marked by lines below the price (2641.09 – 2629.42).

Entry Setup Options

1. Breakout Opportunity Setup

• Buy Entry: If the price closes above the upper resistance area (2681.92) on the 1-hour candle, prepare for the best buy entry positions.
• Sell Entry: If the price closes below the lower support area (2629.42) on the 1-hour candle, prepare for the best sell entry positions.
• Stop Loss:
  • For buy entries, place a stop loss if the price closes below the lower boundary of the resistance area (<2670.53).
  • For sell entries, place a stop loss if the price closes above the upper boundary of the support area (>2641.09).
• Maintain a minimum risk-reward ratio of 1:1.

2. Pullback Setup

• Sell Position:

  • Use the resistance area as the pullback zone.
  • If the price closes within this area on the 1-hour candle, consider entering a sell position.
  • Stop Loss: Place it above the upper boundary of the pullback area (>2681.92).
  • Maintain a minimum risk-reward ratio of 1:1.

• Buy Position:

  • Use the support area as the pullback zone.
  • If the price closes within this area on the 1-hour candle, consider entering a buy position.
  • Stop Loss: Place it below the lower boundary of the pullback area (<2629.42).
  • Maintain a minimum risk-reward ratio of 1:1.

Always apply proper money management strategies to ensure sustainable trading practices and remain cautious of potential fake breakout candles.

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

Happy Trading, everyone!

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