Technical Analysis of GOLD - January 10, 2025

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

Let’s take a look at the 1-hour time frame Gold chart before diving into the analysis:

Price Action Analysis (Trader Pressure)

Based on the market trend, GOLD is still in a Bullish/Uptrend condition. However, it’s essential to anticipate potential trend reversals if the price breaks the Support area above or enters a consolidation phase.

From the candle history, we can identify opportunities for a Buy entry, but for a more objective approach, I will provide an analysis for both Buy and Sell entries.

In the chart above, the Buyer pressure (long green candles) has gradually pushed the price higher, overpowering the Seller pressure (long red candles) and forming Higher Lows. This indicates that Buyers are still dominating the creation of certain price levels. However, there are still Sell opportunities to consider within the Gold market.

The chart shows the Resistance area marked by lines above the price (2686.07 – 2679.09), while the Support area is identified by two lines below the price (2662.64 – 2655.22).

My Entry Setup Suggestions

Below are entry setups that you can adjust to match your trading style:

Breakout Opportunity Setup

• Buy Entry:
  If the 1-hour candle closes above the upper boundary of the Resistance Area (2686.07), prepare to look for the best Buy entry.
• Sell Entry:
  If the 1-hour candle closes below the lower boundary of the Support Area (2655.22), prepare to look for the best Sell entry.
• Cut Loss:
  • For Buy entries, close the position if the 1-hour candle closes below the lower boundary of the Resistance Area (<2679.09).
  • For Sell entries, close the position if the 1-hour candle closes above the upper boundary of the Support Area (>2662.64).
  • Always maintain a minimum risk-to-reward ratio of 1:1.

Pullback Opportunity Setup

• Sell Entry:
  Use the Resistance Area for pullback entries. If the 1-hour candle closes within the pullback area, you can take a Sell position. Cut Loss if the 1-hour candle closes above the upper boundary of the Pullback Area (>2686.07). Ensure a minimum risk-to-reward ratio of 1:1.

• Buy Entry:
  Use the Support Area for pullback entries. If the 1-hour candle closes within the pullback area, you can take a Buy position. Cut Loss if the 1-hour candle closes below the lower boundary of the Pullback Area (<2655.22). Ensure a minimum risk-to-reward ratio of 1:1.

Always apply proper money management in every trade to maintain sustainable and healthy trading. Be cautious of Fake Breakout Candles.

I hope this article serves as a useful reference for your market analysis.

Happy Trading, everyone!

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