Technical Analysis of GOLD – January 9, 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 before diving into the analysis:

Analysis Using Price Action (Trader's Pressure)

In the current market trend, Gold appears to be in a Bullish/Uptrend condition, but we must also anticipate a potential trend reversal if the price breaks the Support area or enters a consolidation phase.

By examining candle history, we can identify opportunities for entry, especially for Buy positions. However, to remain objective, I will present analyses for both Buy and Sell entries.

From the chart above, we can see that Buyer pressure (indicated by long green candles) is gradually pushing the price higher, overpowering the Seller pressure (long red candles) and forming Higher Lows. This indicates that Buyers are still dominating the price levels. However, there are still opportunities for Sell positions in Gold.

On the chart, I have identified the Resistance area with lines above the price (2672.67 – 2666.82) and the Support area with lines below the price (2648.86 – 2642.48).

Entry Setup Suggestions

Below are my suggested setups for entries. You can adjust them to fit your trading style.

Breakout Opportunity Setup

• If the 1-Hour Candle closes above the Resistance area (2672.67), prepare to find the best Buy entry positions.
• If the 1-Hour Candle closes below the Support area (2642.48), prepare to find the best Sell entry positions.
• Use a Stop Loss:
  • For Buy entries: If the 1-Hour Candle closes below the lower boundary of the Resistance area (<2666.82), cut your losses.
  • For Sell entries: If the 1-Hour Candle closes above the upper boundary of the Support area (>2648.86), cut your losses.
• Maintain a minimum risk-reward ratio of 1:1.

Pullback Opportunity Setup for Sell Positions

• Use the Resistance area as the pullback zone. If the 1-Hour Candle closes within the pullback area, take a Sell position.
• Cut your losses if the 1-Hour Candle closes above the upper boundary of the pullback area (>2672.67).
• Apply a minimum risk-reward ratio of 1:1 in line with your trading strategy.

Pullback Opportunity Setup for Buy Positions

• Use the Support area as the pullback zone. If the 1-Hour Candle closes within the pullback area, take a Buy position.
• Cut your losses if the 1-Hour Candle closes below the lower boundary of the pullback area (<2642.48).
• Apply a minimum risk-reward ratio of 1:1 in line with your trading strategy.

Always practice good money management with every entry to ensure healthy trading habits. Be cautious of Fake Breakout Candles and confirm your setups before making a decision.

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

Happy Trading, everyone!

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