Technical Analysis of GOLD for December 4, 2024

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

Let's review the 1-Hour Timeframe chart of GOLD below before diving into the analysis:

Price Action Analysis 

In the current market trend, GOLD is still in a Bullish/Uptrend condition. However, it’s essential to anticipate a potential trend reversal if the price breaks the support area or consolidates.

By observing the candle history, there are opportunities to look for Buy entries. However, to remain objective, I will present setups for both Buy and Sell entries.

From the chart above, the Buyer pressure (indicated by long green candles) has gradually pushed the price upward without significant resistance from Seller pressure (red candles). This has formed a series of Higher Lows, suggesting that Buyers still dominate price level formations.

That said, there are still Sell opportunities available for GOLD.

Key Levels for Resistance and Support

• Resistance Area: 2664.22 – 2653.46
• Support Area: 2629.15 – 2620.50

Entry Setups

Breakout Opportunity Setup

• If the 1-Hour candle closes above the Upper Resistance Level (2664.22), prepare to look for the best Buy entry positions.
• If the 1-Hour candle closes below the Lower Support Level (2620.50), prepare to look for the best Sell entry positions.
• Stop Loss:
  • For Buy entries, set Stop Loss if the 1-Hour candle closes below 2653.46.
  • For Sell entries, set Stop Loss if the 1-Hour candle closes above 2629.15.
• Always maintain a minimum risk-reward ratio of 1:1.

Pullback Opportunity Setup

• Sell Setup:

  • Utilize the resistance area for pullback entries. If the 1-Hour candle closes within this area, you can take a Sell position.
  • Stop Loss: Set if the 1-Hour candle closes above 2664.22.
  • Maintain a minimum risk-reward ratio of 1:1 according to your trading style.

• Buy Setup:

  • Utilize the support area for pullback entries. If the 1-Hour candle closes within this area, you can take a Buy position.
  • Stop Loss: Set if the 1-Hour candle closes below 2620.50.
  • Maintain a minimum risk-reward ratio of 1:1 according to your trading style.

Always implement sound money management in every trade for sustainable trading. Be cautious of Fake Breakout candles and adapt to market conditions accordingly.

I hope this analysis serves as a helpful reference for your market evaluations.

Happy Trading, everyone!

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