Technical Analysis of GOLD on January 14, 2025

From a technical perspective, I observe that Gold is currently at a price level worth considering for potential entry points. 

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

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

Looking at the candlestick history, there are opportunities to identify entry points for Buy positions. To remain objective, I will present analyses for both Buy and Sell setups.

From the chart above, the Buyer’s pressure (represented by the length of green candles) is gradually pushing the price higher, outpacing the Seller’s pressure (red candles). This has resulted in the formation of Higher Lows, indicating that Buyers are still dominating the price levels. However, there are still Sell opportunities to be found in Gold.

On the chart, I’ve identified the Resistance area with the range (2686.39 – 2679.79), while the Support area is marked by two lines below the price (2661.63 – 2655.17).

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

Breakout Opportunity Setup

• If the 1-hour candle closes above the Upper Boundary of the Resistance Area (2686.39), prepare to look for the best Buy entry position.
• If the 1-hour candle closes below the Lower Boundary of the Support Area (2655.17), prepare to look for the best Sell entry position.
• Cut Loss for a Buy entry if the 1-hour candle closes below the lower resistance boundary (<2679.79). For a Sell entry, set a Stop Loss if the 1-hour candle closes above the upper support boundary (>2661.63). Ensure a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Positions

• Use the resistance area as the pullback zone. If the 1-hour candle closes within the pullback area, you can enter a Sell position. Cut Loss if the 1-hour candle closes above the upper pullback boundary (>2686.39). Maintain a minimum risk-reward ratio of 1:1 in line with your trading approach.

Pullback Setup for Buy Positions

• Use the support area as the pullback zone. If the 1-hour candle closes within the pullback area, you can enter a Buy position. Cut Loss if the 1-hour candle closes below the lower pullback boundary (<2655.17). Maintain a minimum risk-reward ratio of 1:1 in line with your trading approach.

Always practice proper money management for sustainable 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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