Technical Analysis of GOLD for January 3, 2025

From a technical perspective, Gold appears to have reached a price level that is worth considering for potential entry points. 

Let's take a closer look at the 1-hour Gold chart below before diving into the analysis:

Using Price Action analysis (Trader Pressure), we can observe that Gold remains in a Bullish/Uptrend market. However, it is essential to anticipate potential trend reversals if the price breaks the support area or consolidates.

From the historical candles, we can identify opportunities for Buy entries. To remain objective, I will present analysis for both Buy and Sell setups.

Upon reviewing the chart, the buyer pressure (indicated by the length of the green candles) is gradually pushing the price higher, uncontested by seller pressure (red candle length), forming Higher Lows. This indicates that buyers continue to dominate the formation of certain price levels. Nonetheless, there are still Sell opportunities available in the Gold market.

Key Levels:

• Resistance Area: 2675.52 – 2668.95
• Support Area: 2651.76 – 2645.44

Suggested Entry Setups:

1. Breakout Opportunity Setup

• Buy Entry: If the 1-hour candle closes above the upper boundary of the Resistance Area (2675.52), look for the best Buy entry position.
• Sell Entry: If the 1-hour candle closes below the lower boundary of the Support Area (2645.44), look for the best Sell entry position.
• Cut Loss:
  • For Buy entries, close the trade if the 1-hour candle closes below the lower boundary of the resistance area (<2668.95).
  • For Sell entries, close the trade if the 1-hour candle closes above the upper boundary of the support area (>2651.76).
• Ensure a risk-reward ratio of at least 1:1.

2. Pullback Opportunity Setup

• Sell Entry: Use the resistance area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Sell position. Close the trade if the 1-hour candle closes above the upper boundary of the pullback area (>2675.52). Ensure a minimum risk-reward ratio of 1:1 based on your trading style.
• Buy Entry: Use the support area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Buy position. Close the trade if the 1-hour candle closes below the lower boundary of the pullback area (<2645.44). Ensure a minimum risk-reward ratio of 1:1 based on your trading style.

Always apply proper money management to ensure sustainable and healthy trading practices. Stay cautious of Fake Breakout Candles, as they can lead to false signals.

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

Happy Trading, everyone!

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