Technical Analysis of GOLD – November 26, 2024

From a technical perspective, I see that the GOLD commodity has entered a price range worth considering for potential entry points.

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

Analysis Using Price Action (Trader Pressure):

In the current market trend, GOLD appears to be in a bullish/uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the identified support area or consolidates further.

By reviewing the historical candles, there are opportunities to seek entry for Buy positions, but to maintain objectivity, I will present both Buy and Sell setups.

Looking at the chart, buyer pressure (indicated by long green candles) has gradually pushed prices higher, with sellers (long red candles) unable to counter this upward momentum, forming higher lows. This indicates that buyers are still dominating the price formation.

Nevertheless, sell opportunities may still arise in GOLD. I have marked the following areas:

• Resistance Area: Between 2662.43 – 2646.15 (above the current price).
• Support Area: Between 2609.15 – 2595.09 (below the current price).

Entry Setup Options

1. Breakout Opportunity:

• Buy Setup:
  If the 1-hour candle closes above the Resistance Area upper boundary (2662.43), prepare to look for the best Buy entry.

• Sell Setup:
  If the 1-hour candle closes below the Support Area lower boundary (2595.09), prepare to look for the best Sell entry.

• Cut Loss:

  • For a Buy entry, exit if the 1-hour candle closes below the lower boundary of the resistance area (<2646.15).
  • For a Sell entry, exit if the 1-hour candle closes above the upper boundary of the support area (>2609.15).
  • Always maintain a minimum risk-reward ratio of 1:1.

2. Pullback Setup:

• Sell Setup:
  Utilize the Resistance Area as a pullback zone. If the 1-hour candle closes within this zone, consider entering a Sell position. Exit if the 1-hour candle closes above the upper boundary of the pullback area (>2662.43). Use a minimum risk-reward ratio of 1:1 aligned with your trading style.

• Buy Setup:
  Utilize the Support Area as a pullback zone. If the 1-hour candle closes within this zone, consider entering a Buy position. Exit if the 1-hour candle closes below the lower boundary of the pullback area (<2595.09). Use a minimum risk-reward ratio of 1:1 aligned with your trading style.

Always apply proper money management to ensure healthy and sustainable trading.Be cautious of fake breakout candles that may lead to false signals.

This analysis aims to provide a solid reference for your market decisions.

Happy Trading, everyone!

Share: