Technical Analysis of GOLD - January 22, 2025

From a technical perspective, I observe that the GOLD commodity has reached a price level that remains worthy of consideration for potential entry points.

Let’s review the 1-Hour Time Frame GOLD chart below before proceeding with the analysis:

Price Action Analysis (Trader Pressure)

In the current market trend, GOLD appears to be in a Bullish/Uptrend condition. However, we must also anticipate potential trend reversals if the price breaks through the Support area mentioned above or consolidates.

From the candlestick history, there are opportunities to look for Buy entries, but to remain objective, I will present an analysis for both Buy and Sell entries.

Looking at the chart above, Buyer pressure (long Green candles) has gradually pushed the price upward without significant resistance from Seller pressure (long Red candles), forming a Higher Low.

This indicates that Buyers continue to dominate the formation of specific price levels. However, Sell opportunities can still be found in this GOLD commodity.

On the chart, I’ve identified the Resistance area with lines above the price (2769.24 – 2760.38) and the Support area with lines below the price (2738.10 – 2729.51).

Entry Setup Options

Below are my suggested entry setups, which you can adjust based on your trading style:

Breakout Opportunity Setup

• If the price closes the 1-Hour candle above the Upper Resistance Area boundary (2769.24), prepare to look for the best Buy entry position.
• If the price closes the 1-Hour candle below the Lower Support Area boundary (2729.51), prepare to look for the best Sell entry position.
• Stop Loss:
  • For Buy entries: Place a Stop Loss if the 1-Hour candle closes below the lower Resistance Area boundary (<2760.38).
  • For Sell entries: Place a Stop Loss if the 1-Hour candle closes above the upper Support Area boundary (>2738.10).
• Maintain a minimum risk-to-reward ratio of 1:1.

Pullback Setup for Sell Positions

• Use the Resistance area for the Pullback setup.
• If the 1-Hour candle closes within the pullback area, consider taking a Sell position.
• Place a Stop Loss if the 1-Hour candle closes above the upper boundary of the pullback area (>2769.24).
• Maintain a minimum risk-to-reward ratio of 1:1, in line with your trading approach.

Pullback Setup for Buy Positions

• Use the Support area for the Pullback setup.
• If the 1-Hour candle closes within the pullback area, consider taking a Buy position.
• Place a Stop Loss if the 1-Hour candle closes below the lower boundary of the pullback area (<2729.51).
• Maintain a minimum risk-to-reward ratio of 1:1, in line with your trading approach.

Always apply proper money management in every trade to ensure healthy trading practices, and stay vigilant against Fake Breakout Candles.

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

Happy Trading, everyone!

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