Technical Analysis of GOLD – February 13, 2025

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

Let's first take a look at the 1-Hour Time Frame Gold chart before diving into the analysis:

Price Action Analysis (Trader Pressure Method)

The market trend indicates that GOLD is still in a Bullish/Uptrend. However, we must also anticipate potential trend reversals if the price breaks through the Support Area or enters a consolidation phase.

Based on historical candlestick patterns, we can identify Buy opportunities. However, to remain objective, I will present an analysis for both Buy and Sell entry setups.

Looking at the chart, the Buyer pressure (as shown by the long green candles) is gradually pushing prices higher, with little resistance from Seller pressure (long red candles), leading to the formation of Higher Lows.

This suggests that Buyers are still dominating price formation at key levels. However, there are still potential Sell opportunities within the Gold market.

On the chart, I have marked the Resistance Area with a horizontal line above the price (2944.72 – 2932.07). Meanwhile, the Support Area is indicated by two lines below the price (2898.52 – 2885.27).

Entry Setup Options

Breakout Opportunity Setup

• If the 1-Hour candle closes above the Upper Resistance Level (2944.72), prepare to look for the best Buy entry.
• If the 1-Hour candle closes below the Lower Support Level (2885.27), prepare to look for the best Sell entry.
• Stop Loss Rules:
  • For Buy entries, place a Stop Loss if the 1-Hour candle closes below 2932.07 (bottom of the Resistance Area).
  • For Sell entries, place a Stop Loss if the 1-Hour candle closes above 2898.52 (top of the Support Area).
  • Always maintain a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Entries

• Use the Resistance Area as a pullback zone.
• If the 1-Hour candle closes within the pullback area, consider entering a Sell position.
• Stop Loss: If the 1-Hour candle closes above 2944.72 (Upper Resistance Boundary).
• Maintain a minimum risk-reward ratio of 1:1, according to your trading strategy.

Pullback Setup for Buy Entries

• Use the Support Area as a pullback zone.
• If the 1-Hour candle closes within the pullback area, consider entering a Buy position.
• Stop Loss: If the 1-Hour candle closes below 2885.27 (Lower Support Boundary).
• Maintain a minimum risk-reward ratio of 1:1, according to your trading strategy.

Always apply proper money management in every trade to maintain healthy trading sustainability. Additionally, be cautious of Fake Breakout Candles.

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

Happy Trading, everyone! 

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