Technical Analysis for GOLD – December 17, 2024

From a technical perspective, I see that Gold has entered a price position worth considering for potential entry points. 

Let’s take a closer look at the 1-Hour Time Frame chart before diving into the analysis.

Price Action Analysis (Trader Pressure)

In the current market trend, Gold remains Bullish/Uptrend, but we must also anticipate a potential trend reversal if the price breaks through the Support area above or enters price consolidation.

Candle History Insight

Looking at candle history, we can spot Buy opportunities, but for a more objective analysis, I will present scenarios for both Buy and Sell entries.

On the chart:

• Buyer pressure (indicated by long green candles) has gradually pushed prices higher without being countered effectively by Seller pressure (red candles), forming Higher Lows.
• This indicates that Buyers still dominate price levels.
• However, Sell opportunities may still arise for Gold.

Key Levels

• Resistance Area: 2674.31 – 2664.95
• Support Area: 2643.97 – 2635.07

Entry Setup Suggestions

1. Breakout Opportunity

• Buy Setup:
  If the 1-Hour candle closes above the Upper Resistance Area (2674.31), look for the best Buy entry opportunities.
• Sell Setup:
  If the 1-Hour candle closes below the Lower Support Area (2635.07), prepare for the best Sell entry opportunities.

Cut Loss:

• For Buy: If the candle closes below 2664.95 (Lower Resistance Boundary).
• For Sell: If the candle closes above 2643.97 (Upper Support Boundary).

Use a minimum risk-reward ratio of 1:1 to manage risk effectively.

2. Pullback Opportunity

• Sell Pullback Setup:
  Use the Resistance Area for pullback entries. If the 1-Hour candle closes within this area, consider a Sell position.
  • Cut Loss: If the candle closes above 2674.31.
  • Maintain a risk-reward ratio of at least 1:1.

• Buy Pullback Setup:
  Use the Support Area for pullback entries. If the 1-Hour candle closes within this area, consider a Buy position.
  • Cut Loss: If the candle closes below 2635.07.
  • Maintain a risk-reward ratio of at least 1:1.

Always apply proper money management in each entry to ensure sustainable and healthy trading practices. Stay cautious of fake breakout candles that may cause false signals.

I hope this analysis can serve as a useful reference for your trading decisions.

Happy Trading, everyone!

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