Technical Analysis of GOLD - December 30, 2024

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

Let’s first examine the 1-hour timeframe Gold chart before proceeding with the analysis:

Analysis Using Price Action (Trader's Pressure)

The Gold market trend appears to remain Bullish/Uptrend, but we must also anticipate a possible trend reversal if the price breaks through the support area or consolidates further.

Looking at the candlestick history, there are opportunities to enter a Buy position, but to maintain objectivity, I’ll provide analyses for both buy and sell entries.

From the chart, we observe that Buyer pressure (indicated by the length of green candles) has steadily pushed prices upward, overpowering Seller pressure (red candle length) and forming Higher Lows. This suggests that buyers still dominate the formation of key price levels. However, sell opportunities may also exist in this commodity.

I’ve marked the Resistance area on the chart with two lines above the price (2635.33 – 2629.32) and the Support area with two lines below the price (2613.23 – 2606.61).

Entry Setup Recommendations

Here are my entry setups, which can be adjusted to fit your trading style:

Breakout Opportunity Setup

• Buy Entry: If the 1-hour candle closes above the upper Resistance boundary (2635.33), prepare to find the best entry buy position.
• Sell Entry: If the 1-hour candle closes below the lower Support boundary (2606.61), prepare to find the best entry sell position.
• Stop Loss (SL):
  • For a buy entry, cut losses if the 1-hour candle closes below the lower boundary of the resistance area (<2629.32).
  • For a sell entry, stop losses should be placed if the 1-hour candle closes above the upper boundary of the support area (>2613.23).
• Maintain a risk-reward ratio of at least 1:1.

Pullback Setup for Sell Positions

• Use the resistance area for pullback opportunities. If the 1-hour candle closes within this area, take a sell position.
• Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2635.33).
• Stick to a minimum 1:1 risk-reward ratio based on your trading strategy.

Pullback Setup for Buy Positions

• Use the support area for pullback opportunities. If the 1-hour candle closes within this area, take a buy position.
• Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2606.61).
• Maintain a minimum 1:1 risk-reward ratio as per your trading plan.

Always implement proper money management in every trade to ensure sustainable and healthy trading practices. Stay alert for potential fake breakout candles, which can disrupt your entry strategy.

I hope this analysis can serve as a valuable reference for your market analysis.

Happy Trading, everyone!

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