From a technical perspective, GOLD appears to be at a price level worth considering for potential entry points.
Let's take a look at the 1-hour time frame chart for GOLD before diving deeper into the analysis:
Analysis Using Price Action (Trader’s Pressure)
In the current trend, GOLD is still in a bullish/uptrend condition. However, we must anticipate possible trend reversals if the price breaks the support area above or enters a consolidation phase.
From the candle history, we can look for buy opportunities. However, to remain objective, I will provide an analysis for both buy and sell entries.
If we observe the chart, the buyer’s pressure (represented by the length of green candles) is gradually pushing the price higher without significant resistance from seller pressure (red candles) and is forming higher lows. This indicates that buyers still dominate the formation of certain price levels. However, sell opportunities can still be identified in this commodity.
On the chart, I have marked the Resistance Area with lines above the price (2679.73–2674.89) and the Support Area with lines below the price (2660.90–2655.30).
Suggested Entry Setups
You can adapt these setups to your trading style:
Breakout Opportunity Setup:
- If the 1-hour candle closes above the Resistance Area's upper limit (2679.73), prepare to look for the best buy entry positions.
- If the 1-hour candle closes below the Support Area's lower limit (2655.30), prepare to look for the best sell entry positions.
- Use a Stop Loss:
- For buy entries: If the 1-hour candle closes below the lower limit of the resistance area (<2674.89).
- For sell entries: If the 1-hour candle closes above the upper limit of the support area (>2660.90).
- Maintain a minimum risk-reward ratio of 1:1.
Pullback Setup for Sell Positions:
- Use the resistance area as the pullback zone.
- If the 1-hour candle closes within this pullback area, take a sell position and set a Stop Loss if the price closes above the upper limit of the pullback area (>2679.73).
- Maintain a minimum risk-reward ratio of 1:1 based on your trading strategy.
Pullback Setup for Buy Positions:
- Use the support area as the pullback zone.
- If the 1-hour candle closes within this pullback area, take a buy position and set a Stop Loss if the price closes below the lower limit of the pullback area (<2655.30).
- Maintain a minimum risk-reward ratio of 1:1 based on your trading strategy.
Always implement proper money management for sustainable and healthy trading. Additionally, stay cautious of fake breakout candles to avoid false signals.