Technical Analysis of GOLD - January 28, 2025

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

Let’s analyze the following Gold chart on the 1-hour time frame before diving deeper:

Price Action Analysis (Trader Pressure)

In the current market trend, 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 consolidation phase.

From the candle history, we can identify opportunities for a Buy entry. However, to remain objective, I will provide analysis for both Buy and Sell entry opportunities.

Looking at the chart, the Buyer pressure (long green candles) is gradually pushing the price higher, outpacing the Seller pressure (long red candles) and forming Higher Lows. This indicates that Buyers still dominate the formation of certain price levels. However, Sell opportunities can also be found in this Gold commodity.

On the chart, I’ve marked the Resistance area with lines above the current price (2755.84 – 2749.03). For the Support area, you can see it marked with two lines below the current price (2730.15 – 2723.16).

My Suggested Entry Setups

You can adapt these setups based on your trading style:

Breakout Opportunity Setup

• Buy Entry: If the 1-hour candle closes above the upper limit of the Resistance Area (2755.84), look for the best Buy entry position.
• Sell Entry: If the 1-hour candle closes below the lower limit of the Support Area (2723.16), look for the best Sell entry position.
• Cut Loss:
  • For Buy entry: Exit if the 1-hour candle closes below the lower limit of the Resistance Area (<2749.03).
  • For Sell entry: Exit if the 1-hour candle closes above the upper limit of the Support Area (>2730.15).
  • Ensure a minimum risk-reward ratio of 1:1.

Pullback Opportunity Setup

• Sell Entry: Use the Resistance area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Sell position. Exit if the 1-hour candle closes above the upper limit of the pullback zone (>2755.84). Use a minimum risk-reward ratio of 1:1 based on your trading strategy.
• Buy Entry: Use the Support area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Buy position. Exit if the 1-hour candle closes below the lower limit of the pullback zone (<2723.16). Use a minimum risk-reward ratio of 1:1 based on your trading strategy.

Always apply proper money management for sustainable and healthy trading, and remain cautious of Fake Breakout Candles.

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

Happy Trading, everyone!

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