Technical Analysis of GOLD - December 12, 2024

From a technical perspective, I observe that Gold has reached a price level worth considering for potential entry points. 

Let’s examine the 1-Hour Time Frame Gold chart below before diving into the analysis:

Analysis Using Price Action (Trader Pressure)

In the current market trend, Gold appears to remain in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks below the Support area or consolidates.

From the candlestick history, opportunities to enter a Buy position can be identified. However, to remain objective, I will provide an analysis for both Buy and Sell entries.

Looking at the chart above, we see that Buyer pressure (indicated by long green candles) has gradually pushed the price upward without significant resistance from Seller pressure (long red candles), forming a series of Higher Lows. This indicates that Buyers are still dominating price level formations. However, Sell opportunities can still be found in this Gold commodity.

On the chart, I have identified the Resistance area with two lines above the price (2741.90 – 2731.44). For the Support area, two lines below the price (2705.21 – 2695.43) have been marked.

My Suggested Entry Setups

You can use these setups according to your trading style:

1. Breakout Opportunity Setup:

• If the price closes a 1-Hour candle above the Upper Resistance Boundary (2741.90), look for the best Buy entry position.
• If the price closes a 1-Hour candle below the Lower Support Boundary (2695.43), prepare for the best Sell entry position.
• Set a Cut Loss level if the price closes a 1-Hour candle below the lower resistance boundary (<2731.44) for Buy entries or above the upper support boundary (>2705.21) for Sell entries. Use a minimum risk-to-reward ratio of 1:1.

2. Pullback Setup for Sell Position:

• Use the Resistance area for a pullback. If the price closes a 1-Hour candle within this pullback area, take a Sell position.
• Set a Cut Loss level if the price closes a 1-Hour candle above the upper pullback boundary (>2741.90). Use a minimum risk-to-reward ratio of 1:1 based on your trading style.

3. Pullback Setup for Buy Position:

• Use the Support area for a pullback. If the price closes a 1-Hour candle within this pullback area, take a Buy position.
• Set a Cut Loss level if the price closes a 1-Hour candle below the lower pullback boundary (<2695.43). Use a minimum risk-to-reward ratio of 1:1 based on your trading style.

Always implement proper money management with every entry to ensure healthy trading practices. Stay cautious of potential Fake Breakout Candles.

I hope this article serves as a valuable reference for your market analysis.

Happy Trading, everyone!

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