Technical Analysis of GOLD – January 31, 2025

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

Let’s take a look at the 1-hour time frame Gold chart before diving into the analysis:

Using Price Action analysis (Trader Pressure), the Gold market remains in a Bullish/Uptrend condition. However, we must also anticipate a trend reversal if the price breaks through the support area above or if consolidation occurs.

Based on the candle history, we can look for Buy entry opportunities, but to remain objective, I will present an analysis for both Buy and Sell entries.

Looking at the chart, Buyer pressure (long Green candles) is gradually pushing the price higher, with Seller pressure (long Red candles) failing to counter it, forming a Higher Low pattern. This indicates that Buyers still dominate the formation of certain price levels. However, Sell opportunities can still be found in the Gold market.

On the chart, I have identified the Resistance area with the upper boundary at 2812.98 – 2805.60 and the Support area with the lower boundary at 2786.06 – 2779.61.

Entry Setup Options

Breakout Opportunity Setup

• If the 1-hour candle closes above the upper boundary of the Resistance Area (2812.98), prepare to find the best Buy entry position.
• If the 1-hour candle closes below the lower boundary of the Support Area (2779.61), prepare to find the best Sell entry position.
• Cut Loss if the 1-hour candle closes below 2805.60 for Buy entries, and above 2786.06 for Stop Loss on Sell entries.
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Entry

• Use the Resistance area as the pullback zone. If the 1-hour candle closes within the pullback area, a Sell position can be taken.
• Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2812.98).
• Apply a minimum risk-reward ratio of 1:1, according to your trading style.

Pullback Setup for Buy Entry

• Use the Support area as the pullback zone. If the 1-hour candle closes within the pullback area, a Buy position can be taken.
• Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2779.61).
• Apply a minimum risk-reward ratio of 1:1, based on your trading strategy.

Always implement proper risk management in every entry to maintain healthy trading conditions and remain cautious of fake breakout candles.

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

Happy Trading, everyone!

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