Technical Analysis of GOLD – November 29, 2024

From a technical perspective, GOLD has reached a price level worth considering for potential entry points.

Let’s analyze the 1-hour timeframe chart below before diving into the details:

Price Action Analysis (Trader's Pressure)

Currently, GOLD remains in a bullish trend (uptrend), but it’s essential to anticipate a potential trend reversal if the price breaks below the support area or enters a consolidation phase.

In the candle history, we can observe opportunities for Buy entries, but to maintain objectivity, I’ll provide analysis for both Buy and Sell setups.

From the chart above:

• Buyer pressure (represented by long green candles) is gradually driving prices higher, outpacing Seller pressure (represented by shorter red candles), forming higher lows.
• This indicates that buyers are still dominating the price formation at key levels. However, Sell opportunities may still arise.

Key Levels

• Resistance Area: 2669.83 – 2660.48
• Support Area: 2636.40 – 2626.11

Suggested Entry Setups

1. Breakout Opportunity Setup

• Buy Entry:
  If a 1-hour candle closes above the upper resistance boundary (2669.83), look for the best Buy entry positions.
• Sell Entry:
  If a 1-hour candle closes below the lower support boundary (2626.11), prepare for Sell entry opportunities.

Stop Loss:

• For Buy entry, set Stop Loss if a 1-hour candle closes below the lower resistance boundary (<2660.48).
• For Sell entry, set Stop Loss if a 1-hour candle closes above the upper support boundary (>2636.40).

Risk Ratio: Use a minimum risk-to-reward ratio of 1:1.

2. Pullback Opportunity Setup

• Sell Entry:
  • Use the resistance area as a pullback zone.
  • If a 1-hour candle closes within the pullback area, consider entering a Sell position.
  • Set Stop Loss if the price closes above the upper pullback boundary (>2669.83).
• Buy Entry:
  • Use the support area as a pullback zone.
  • If a 1-hour candle closes within the pullback area, consider entering a Buy position.
  • Set Stop Loss if the price closes below the lower pullback boundary (<2626.11).

Risk Ratio: Maintain a minimum risk-to-reward ratio of 1:1 according to your trading style.

Final Notes

• Always use proper money management to ensure sustainable and healthy trading.
• Be cautious of Fake Breakouts when entering positions.

I hope this analysis provides valuable insights for your market decisions.

Happy Trading, everyone!

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