Technical Analysis of GOLD for December 31, 2024

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

Let's review the 1-hour timeframe Gold chart before diving into the analysis:

Price Action Analysis (Trader Pressure)

Based on the market trend, Gold remains in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the Support area above or consolidates.

Looking at the candlestick history, there are opportunities to find Buy entries. For objectivity, I will present analysis for both Buy and Sell entries.

From the chart, we can see that Buyer pressure (indicated by the long green candles) gradually pushes the price higher without significant opposition from Seller pressure (short red candles), forming a Higher Low. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities may also emerge in this Gold commodity.

Key Levels to Watch

• Resistance Area: 2622.48 – 2616.21
• Support Area: 2600.92 – 2595.33

Suggested Entry Setups

Here are the setups you can use based on your trading style:

1. Breakout Opportunity Setup

• If the 1-hour candle closes above the upper boundary of the Resistance Area (2622.48), prepare to find the best Buy entry positions.
• If the 1-hour candle closes below the lower boundary of the Support Area (2595.33), prepare to find the best Sell entry positions.
• Stop Loss:
  • For Buy entries: Set a Stop Loss if the 1-hour candle closes below the lower boundary of the Resistance Area (<2616.21).
  • For Sell entries: Set a Stop Loss if the 1-hour candle closes above the upper boundary of the Support Area (>2600.92).
• Ensure a minimum risk-reward ratio of 1:1.

2. Pullback Setup

• Sell Position:

  • Use the Resistance Area for pullbacks. If the 1-hour candle closes within the pullback area, take a Sell position.
  • Set a Stop Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2622.48).
  • Maintain a risk-reward ratio of 1:1 or as per your trading strategy.

• Buy Position:

  • Use the Support Area for pullbacks. If the 1-hour candle closes within the pullback area, take a Buy position.
  • Set a Stop Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2595.33).
  • Maintain a risk-reward ratio of 1:1 or as per your trading strategy.

Always apply proper money management in every entry to ensure sustainable trading practices. Remain vigilant against fake breakout candles to avoid unnecessary losses.

Hopefully, this analysis serves as a useful reference for your trading decisions.

Happy Trading, everyone!

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