Technical Analysis of GOLD – February 25, 2025

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

Let’s take a look at the 1-Hour Time Frame Gold Chart before we begin our analysis:

Using Price Action Analysis (Trader Pressure), we can see that GOLD is still in a Bullish/Uptrend market condition. However, we must also anticipate a possible trend reversal if the price breaks through the support area above or if the market enters a consolidation phase.

By analyzing historical candles, we can look for Buy entry opportunities, but to remain objective, I will present an analysis for both Buy and Sell entries.

Observing the chart, Buyer pressure (long green candles) is gradually pushing the price higher without significant resistance from Seller pressure (long red candles), forming a Higher Low structure.

This indicates that buyers are still dominating the formation of certain price levels. However, we can still find Sell opportunities in this commodity.

On the chart, I have identified the Resistance area with lines above the price (2967.27 – 2960.34), and the Support area with two lines below the price (2941.87 – 2933.97).

Entry Setup Recommendations

You can adjust these setups according to your trading style.

Breakout Opportunity Setup:

• If the 1-Hour Candle closes above the Resistance Area (2967.27), prepare to look for the best Buy entry position.
• If the 1-Hour Candle closes below the Support Area (2933.97), prepare to look for the best Sell entry position.
• Cut Loss strategy:
  • For a Buy entry, exit the trade if the 1-Hour Candle closes below the lower boundary of the resistance area (<2960.34).
  • For a Sell entry, exit the trade if the 1-Hour Candle closes above the upper boundary of the support area (>2941.87).
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Entry:

• Use the Resistance area as the pullback reference.
• If the 1-Hour Candle closes within the pullback area, you may take a Sell position.
• Exit the trade (Cut Loss) if the 1-Hour Candle closes above the upper boundary of the pullback area (>2967.27).
• Use a minimum risk-reward ratio of 1:1 based on your trading strategy.

Pullback Setup for Buy Entry:

• Use the Support area as the pullback reference.
• If the 1-Hour Candle closes within the pullback area, you may take a Buy position.
• Exit the trade (Cut Loss) if the 1-Hour Candle closes below the lower boundary of the pullback area (<2933.97).
• Use a minimum risk-reward ratio of 1:1 based on your trading strategy.

Always apply good money management in every trade to maintain a healthy trading practice. Also, be cautious of Fake Breakout Candles.

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

Happy Trading, everyone! 🚀

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