From a technical perspective, I see that Gold has reached a price level worth considering for potential entry points.
Let’s examine the 1-hour timeframe Gold chart below before diving into the analysis:
Price Action Analysis (Trader Pressure)
Gold remains in a Bullish/Uptrend condition in the current market trend. However, we must also anticipate a potential trend reversal if the price breaks the Support area above or enters a consolidation phase.
Based on the candle history, there are opportunities to seek Buy entries. However, to remain objective, I will present an analysis for both Buy and Sell entries.
Looking at the chart above, we can observe Buyer pressure (represented by long green candles) gradually driving prices higher, with Sellers (red candles) unable to push back effectively. This formation of Higher Lows indicates that Buyers still dominate at certain price levels. That said, opportunities for Sell entries also exist in this Gold market.
Key Levels
- Resistance Area: 2646.20 – 2639.40
- Support Area: 2621.74 – 2613.80
Entry Setup Options
1. Breakout Opportunity
- Buy Setup:If the price closes a 1-hour candle above the Upper Resistance Area (2646.20), prepare to look for the best Buy entry position.
- Sell Setup:If the price closes a 1-hour candle below the Lower Support Area (2613.80), prepare to look for the best Sell entry position.
Cut Loss:
- For Buy: If the 1-hour candle closes below the lower boundary of the Resistance Area (<2639.40).
- For Sell: If the 1-hour candle closes above the upper boundary of the Support Area (>2621.74).
Maintain a minimum risk-to-reward ratio of 1:1.
2. Pullback Opportunity
- Sell Setup:Use the Resistance Area as the pullback zone. If the price closes a 1-hour candle within this zone, consider a Sell position. Cut Loss if the price closes above the upper boundary of the pullback zone (>2646.20). Maintain a minimum risk-to-reward ratio of 1:1.
- Buy Setup:Use the Support Area as the pullback zone. If the price closes a 1-hour candle within this zone, consider a Buy position. Cut Loss if the price closes below the lower boundary of the pullback zone (<2613.80). Maintain a minimum risk-to-reward ratio of 1:1.
Always use proper money management for sustainable and healthy trading practices. Stay vigilant against Fake Breakout Candles to avoid unnecessary losses.
I hope this analysis can serve as a useful reference for your market trades.
Happy Trading, everyone!