From a technical perspective, I observe that Gold has reached a price level worth considering for potential entry points.
Let’s take a look at the 1-hour timeframe chart for Gold before diving into the analysis:
Price Action Analysis (Trader Pressure)
In the current market trend, Gold remains in a Bullish/Uptrend condition. However, it’s essential to anticipate possible trend reversals if the price breaks through the Support Area above or consolidates further.
By analyzing the candlestick history, we can identify opportunities for Buy entries, but to remain objective, I will provide an analysis for both Buy and Sell entries.
In the chart above, Buyer pressure (as indicated by the length of the green candles) is gradually pushing the price higher, overpowering Seller pressure (represented by the red candles). This has resulted in the formation of Higher Lows, signaling that Buyers continue to dominate certain price levels. Nonetheless, there are still opportunities for Sell entries within the Gold market.
I’ve marked the Resistance Area with two lines above the price (2645.69 – 2640.84) and the Support Area with two lines below the price (2627.25 – 2622.40).
My Entry Setup Recommendations
These setups can be adjusted to match your trading style:
Breakout Opportunity Setup:
- If the price closes a 1-hour candle above the Resistance Area’s upper limit (2645.69), prepare to look for the best Buy entry positions.
- If the price closes a 1-hour candle below the Support Area’s lower limit (2622.40), prepare to look for the best Sell entry positions.
- Stop Loss:
- For Buy entries, place the Stop Loss if the price closes a 1-hour candle below the lower boundary of the Resistance Area (<2640.84).
- For Sell entries, place the Stop Loss if the price closes a 1-hour candle above the upper boundary of the Support Area (>2627.25).
- Ensure a risk-reward ratio of at least 1:1.
Pullback Opportunity Setup:
For Sell Positions:
- Use the Resistance Area as the pullback zone.
- If the price closes a 1-hour candle within the pullback area, take a Sell position.
- Cut Loss if the price closes a 1-hour candle above the upper boundary of the pullback area (>2645.69).
- Maintain a risk-reward ratio of at least 1:1 according to your trading plan.
For Buy Positions:
- Use the Support Area as the pullback zone.
- If the price closes a 1-hour candle within the pullback area, take a Buy position.
- Cut Loss if the price closes a 1-hour candle below the lower boundary of the pullback area (<2622.40).
- Maintain a risk-reward ratio of at least 1:1 according to your trading plan.