From a technical perspective, I observe that Gold is currently at a price level worth considering for potential entry points.
Let’s take a look at the 1-Hour Time Frame Gold chart below before diving into the analysis:
Using Price Action analysis (Trader Pressure), it is clear that Gold remains in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the Support area above or enters a price consolidation phase.
From the historical candlestick patterns, we can identify potential Buy opportunities. However, to maintain objectivity, I will provide an analysis for both Buy and Sell entries.
If we examine the chart, the Buyer pressure (represented by the length of green candles) is gradually pushing the price upward, while the Seller pressure (red candles) appears unable to counter it, forming Higher Lows. This indicates that Buyers still dominate the formation of certain price levels. Nevertheless, Sell opportunities can still be found in the Gold market.
In the chart, I have identified the Resistance area with lines above the price (2769.24 – 2760.38) and the Support area with two lines below the price (2738.10 – 2729.51).
Here are my entry setup options, which you can adapt to your trading style:
Breakout Opportunity Setup
- If the price closes a 1-hour candle above the Resistance Area upper limit (2769.24), prepare to look for the best Buy entry position.
- If the price closes a 1-hour candle below the Support Area lower limit (2729.51), prepare to look for the best Sell entry position.
- Apply a Stop Loss if the 1-hour candle closes below the Resistance Area lower limit (<2760.38) for Buy entries or above the Support Area upper limit (>2738.10) for Sell entries. Use a risk-reward ratio of at least 1:1.
Pullback Setup for Sell Position
- Use the Resistance Area for a pullback setup. If the 1-hour candle closes within the pullback area, take a Sell position and cut losses if the price closes above the upper pullback area (>2769.24). Maintain a minimum 1:1 risk-reward ratio based on your trading method.
Pullback Setup for Buy Position
- Use the Support Area for a pullback setup. If the 1-hour candle closes within the pullback area, take a Buy position and cut losses if the price closes below the lower pullback area (<2729.51). Maintain a minimum 1:1 risk-reward ratio based on your trading method.
Always apply proper money management for sustainable and healthy trading, and stay alert for Fake Breakout candles.
I hope this article serves as a useful reference for your market analysis.
Happy Trading, everyone!