Technical Analysis of GOLD – February 3, 2025

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

Before analyzing further, let’s take a look at the Gold 1-hour time frame chart:

Price Action Analysis (Trader Pressure)

Gold remains 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.

From historical candlestick patterns, we can identify buy entry opportunities. However, to stay objective, I will provide an analysis for both buy and sell setups.

Looking at the chart above, buyer pressure (represented by the length of the green candles) continues to push prices higher without significant opposition from seller pressure (length of red candles), forming a higher low.

This indicates that buyers still dominate certain price levels. However, sell opportunities can still be found within this commodity.

On the chart:

• Resistance area is marked at 2812.98 – 2805.60.
• Support area is identified at 2786.06 – 2779.61.

My Suggested Trade Setups

Breakout Opportunity Setup

• If the 1-hour candle closes above the upper resistance area (2812.98), prepare to enter a buy position.
• If the 1-hour candle closes below the lower support area (2779.61), prepare to enter a sell position.
• Stop Loss:
  • For buy entries, place a stop loss if the 1-hour candle closes below 2805.60.
  • For sell entries, place a stop loss if the 1-hour candle closes above 2786.06.
• Use a minimum risk-to-reward ratio of 1:1.

Pullback Setup for Sell Position

• Sell at resistance area: If the 1-hour candle closes within the pullback area, a sell entry can be taken.
• Stop Loss: If the 1-hour candle closes above 2812.98, exit the position.
• Use a minimum risk-to-reward ratio of 1:1 according to your trading style.

Pullback Setup for Buy Position

• Buy at support area: If the 1-hour candle closes within the pullback area, a buy entry can be taken.
• Stop Loss: If the 1-hour candle closes below 2779.61, exit the position.
• Use a minimum risk-to-reward ratio of 1:1 according to your trading style.

Always apply proper money management in every trade for sustainable trading performance, and stay alert to potential fake breakout candles.

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

Happy Trading, everyone!

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