Technical Analysis of GOLD - January 17, 2025

From a technical standpoint, I observe that Gold has entered a price zone that remains attractive for identifying potential entry points. 

Let’s examine the 1-hour Gold chart below before diving into the analysis:

Using Price Action analysis (Trader Pressure), the market trend indicates that GOLD is still in a Bullish/Uptrend condition. However, we must anticipate a potential trend reversal if the price breaks below the Support area or consolidates.

Based on the historical candlestick patterns, we can find opportunities for Buy entries. However, to remain objective, I will provide an analysis for both Buy and Sell setups.

Looking at the chart above, Buyer pressure (as indicated by the length of the Green candles) is steadily pushing the price upward, overpowering the Seller pressure (as indicated by the length of the Red candles), forming Higher Lows. This suggests that Buyers are still dominating price formation at specific levels. Nevertheless, Sell opportunities can also be identified in this commodity.

On the chart, I have identified the Resistance area using the lines above the price (2728.78 – 2722.31), while the Support area can be seen from the two lines below the price (2704.30 – 2697.19).

Entry Setup Recommendations

Below are the entry setups that can be adapted to suit your trading style:

Breakout Opportunity Setup

• If the price closes a 1-hour candle above the Resistance area (2728.78), prepare to find the best Buy entry.
• If the price closes a 1-hour candle below the Support area (2697.19), prepare to find the best Sell entry.
• Set a Stop Loss if the 1-hour candle closes below the lower boundary of the Resistance area (<2722.31) for Buy entries, and above the upper boundary of the Support area (>2704.30) for Sell entries. Use a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Positions

• Use the Resistance area for Pullback setups. If a 1-hour candle closes within this area, consider entering a Sell position. Set a Stop Loss if the 1-hour candle closes above the upper boundary of the Pullback area (>2728.78). Use a minimum risk-reward ratio of 1:1, as per your trading strategy.

Pullback Setup for Buy Positions

• Use the Support area for Pullback setups. If a 1-hour candle closes within this area, consider entering a Buy position. Set a Stop Loss if the 1-hour candle closes below the lower boundary of the Pullback area (<2697.19). Use a minimum risk-reward ratio of 1:1, as per your trading strategy.

Always implement proper money management to ensure sustainable trading practices, and remain cautious of potential Fake Breakout candles.

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

Happy Trading, everyone!

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