Technical Analysis of GOLD – December 26, 2024

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

Let’s take a closer look at the 1-hour time frame Gold chart before we proceed with the analysis:

Price Action Analysis (Trader Pressure)

The current market trend shows that GOLD is still in a Bullish/Uptrend condition. However, we must remain cautious about potential trend reversals if the price breaks the Support area or enters a consolidation phase.

From the historical candlestick patterns, opportunities for a Buy entry can be identified. However, for a more objective view, I will provide both buy and sell setups.

Referring to the chart above, Buyer pressure (indicated by the length of green candles) has steadily pushed prices upward, with Sellers (red candles) unable to counter the movement, resulting in the formation of Higher Lows. This indicates that Buyers are still dominating the formation of specific price levels. Nevertheless, Sell opportunities may still arise in this commodity.

Key Levels to Watch:

• Resistance Area: 2646.43 – 2637.44
• Support Area: 2615.06 – 2606.29

Entry Setups

1. Breakout Opportunity Setup

• Buy Entry: If the price closes above the Upper Resistance Boundary (2646.43) on the 1-hour candle, prepare to find the best Buy entry position.
• Sell Entry: If the price closes below the Lower Support Boundary (2606.29) on the 1-hour candle, prepare to find the best Sell entry position.
• Cut Loss:
  • For Buy: If the price closes below the lower boundary of the resistance area (<2637.44).
  • For Sell: If the price closes above the upper boundary of the support area (>2615.06).
• Ensure a minimum risk-reward ratio of 1:1.

2. Pullback Opportunity Setup

• Sell Position:

  • Use the Resistance area for pullback setups. If the price closes within the pullback area on the 1-hour candle, consider taking a Sell position.
  • Cut Loss: If the price closes above the upper boundary of the pullback area (>2646.43).
  • Maintain a minimum risk-reward ratio of 1:1.

• Buy Position:

  • Use the Support area for pullback setups. If the price closes within the pullback area on the 1-hour candle, consider taking a Buy position.
  • Cut Loss: If the price closes below the lower boundary of the pullback area (<2606.29).
  • Maintain a minimum risk-reward ratio of 1:1.

Always apply proper money management in every entry to ensure sustainable trading. Stay vigilant for potential Fake Breakout Candles, which could lead to false signals.

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

Happy Trading, everyone!

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