Technical Analysis of GOLD - January 24, 2025

From a technical perspective, I observe that Gold has reached a price level worth considering for potential entry points. 

Let’s review the 1-hour time frame Gold chart below before diving into the analysis:

Using Price Action analysis (Trader's Pressure), it’s evident that Gold remains in a Bullish/Uptrend condition. However, we must also anticipate a possible trend reversal if the price breaks through the support area above or enters a consolidation phase.

Based on candle history, we can identify opportunities for buy entries, but to remain objective, I will provide analysis for both buy and sell setups.

From the chart above, buyer pressure (represented by the length of green candles) is steadily pushing prices upward without significant opposition from seller pressure (red candle lengths), forming higher lows. This indicates that buyers still dominate price formation at certain levels. However, there are still potential sell opportunities in Gold.

I’ve identified the following key areas:

• Resistance Zone: Between 2783.36 and 2773.87
• Support Zone: Between 2748.48 and 2738.76

Suggested Entry Setups

Here are my recommended setups based on your trading style:

Breakout Opportunity Setup

• For Buy Entry:
  If the 1-hour candle closes above the upper boundary of the resistance area (2783.36), prepare to find the best buy entry position.
• For Sell Entry:
  If the 1-hour candle closes below the lower boundary of the support area (2738.76), prepare to find the best sell entry position.

Stop Loss Guidelines:

• For Buy Entry: Place a stop loss if the 1-hour candle closes below the lower boundary of the resistance area (<2773.87).
• For Sell Entry: Place a stop loss if the 1-hour candle closes above the upper boundary of the support area (>2748.48).
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup

1. Sell Position:
   Use the resistance area as a pullback zone. If the 1-hour candle closes within this area, you can take a sell position. Place a stop loss if the 1-hour candle closes above the upper boundary of the pullback area (>2783.36). Ensure a minimum risk-reward ratio of 1:1 based on your trading strategy.

2. Buy Position:
   Use the support area as a pullback zone. If the 1-hour candle closes within this area, you can take a buy position. Place a stop loss if the 1-hour candle closes below the lower boundary of the pullback area (<2738.76). Ensure a minimum risk-reward ratio of 1:1 based on your trading strategy.

Key Trading Tips

• Always implement proper money management to ensure sustainable trading.
• Stay cautious of potential fake breakout candles.

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

Happy Trading, everyone!

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