Technical Analysis of GOLD - January 8, 2025

From a technical perspective, I see that Gold has entered a price range worth considering for potential entry points. 

Let's examine the 1-Hour Time Frame Gold chart below before diving into the analysis:

Using the Price Action (Trader Pressure) analysis, it appears that Gold is still in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks below the Support area or consolidates.

In the candle history, we can look for potential Buy entries, but to remain objective, I will provide an analysis for both Buy and Sell entries.

Looking at the chart above, the pressure from Buyers (indicated by the length of green candles) is gradually pushing prices upward, overpowering the pressure from Sellers (red candle lengths) and forming Higher Lows. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities can still be found in this Gold market.

On the chart, I have marked the Resistance area with lines above the price (2661.85 – 2655.99) and the Support area with lines below the price (2639.91 – 2633.81).

Here are my suggested entry setups, which you can adapt to your trading style:

Setup for Breakout Opportunities

1. If the price closes a 1-Hour candle above the Upper Boundary of the Resistance Area (2661.85), prepare to find the best Buy entry.
2. If the price closes a 1-Hour candle below the Lower Boundary of the Support Area (2633.81), prepare to find the best Sell entry.

For a Buy entry, set your Stop Loss if the price closes a 1-Hour candle below the lower boundary of the Resistance Area (<2655.99).

For a Sell entry, set your Stop Loss if the price closes a 1-Hour candle above the upper boundary of the Support Area (>2639.91).

Maintain a minimum risk-reward ratio of 1:1.

Setup for Pullback Sell Position

• Use the Resistance area as the pullback zone.
• If the price closes a 1-Hour candle within the pullback area, you can take a Sell position.
• Set a Stop Loss if the price closes a 1-Hour candle above the upper boundary of the pullback area (>2661.85).
• Ensure a minimum risk-reward ratio of 1:1 in accordance with your trading strategy.

Setup for Pullback Buy Position

• Use the Support area as the pullback zone.
• If the price closes a 1-Hour candle within the pullback area, you can take a Buy position.
• Set a Stop Loss if the price closes a 1-Hour candle below the lower boundary of the pullback area (<2633.81).
• Ensure a minimum risk-reward ratio of 1:1 in accordance with your trading strategy.

Always apply proper money management to ensure sustainable trading and remain cautious of Fake Breakout Candles.

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

Happy Trading, everyone!

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