Technical Analysis of GOLD – November 28, 2024

Based on technical analysis, Gold is currently at a price level worth considering for potential entry points. 

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

Price Action Analysis (Trader Pressure):

Gold remains in a Bullish/Uptrend condition in the market. However, we should anticipate a potential trend reversal if the price breaks below the Support area or enters a consolidation phase.

Looking at the candle history, we can identify opportunities for entry, particularly for a Buy setup. However, to remain objective, this analysis will include setups for both Buy and Sell entries.

From the chart, Buyer pressure (evidenced by the length of green candles) is gradually pushing prices higher, overshadowing Seller pressure (red candle lengths), while forming Higher Lows. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities can still be identified in this Gold market.

Key levels are identified on the chart:

• Resistance Area: Between 2662.43 and 2646.15.
• Support Area: Between 2609.15 and 2595.09.

Recommended Entry Setups:

Breakout Opportunity Setup

• Buy Entry:
  Look for a Buy entry if the 1-hour candle closes above the upper boundary of the Resistance Area (2662.43).
• Sell Entry:
  Look for a Sell entry if the 1-hour candle closes below the lower boundary of the Support Area (2595.09).

Stop Loss Guidance:

• For Buy entries, cut loss if the 1-hour candle closes below the lower boundary of the Resistance Area (<2646.15).
• For Sell entries, cut loss if the 1-hour candle closes above the upper boundary of the Support Area (>2609.15).
• Always apply a minimum risk-to-reward ratio of 1:1.

Pullback Opportunity Setup

• Sell Entry:
  Use the Resistance Area as the pullback zone. If a 1-hour candle closes within this area, consider taking a Sell position. Set a Stop Loss if the candle closes above the upper boundary of the Resistance Area (>2662.43). Apply a risk-to-reward ratio of at least 1:1.
• Buy Entry:
  Use the Support Area as the pullback zone. If a 1-hour candle closes within this area, consider taking a Buy position. Set a Stop Loss if the candle closes below the lower boundary of the Support Area (<2595.09). Apply a risk-to-reward ratio of at least 1:1.

Implement solid money management practices for sustainable trading.Be cautious of Fake Breakout Candles and adjust your strategy accordingly.

We hope this analysis serves as a valuable reference for your market decisions.

Happy Trading, everyone!

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