From a technical perspective, Gold has reached a price level that warrants careful consideration for potential entry points.
Let’s take a closer look at the 1-hour timeframe Gold chart before diving into the analysis:
Analysis Using Price Action (Trader’s Pressure)
In the current market trend, Gold is still in a Bullish/Uptrend condition. However, it’s crucial to anticipate a potential trend reversal if the price breaks through the support area or enters a consolidation phase.
By reviewing the candle history, there are clear opportunities to identify potential buy entries. To maintain objectivity, I’ll present an analysis for both buy and sell entry setups.
Observing the chart above, the dominance of buyers is evident as green candles (buyer pressure) consistently push the price upward, forming higher lows, with minimal opposition from red candles (seller pressure). This indicates that buyers are still the primary drivers of price formation.
Nevertheless, selling opportunities remain viable in Gold. The chart highlights the following:
- Resistance Area: 2666.11 – 2653.03
- Support Area: 2617.80 – 2604.72
Suggested Entry Setups
1. Breakout Opportunity Setup
- Buy Entry: If the 1-hour candle closes above the upper boundary of the Resistance Area (2666.11), prepare to find the best buy entry point.
- Sell Entry: If the 1-hour candle closes below the lower boundary of the Support Area (2604.72), prepare to find the best sell entry point.
- Stop Loss:
- For buy entries, cut losses if the 1-hour candle closes below the lower boundary of the Resistance Area (<2653.03).
- For sell entries, cut losses if the 1-hour candle closes above the upper boundary of the Support Area (>2617.80).
- Always maintain a risk-to-reward ratio of at least 1:1.
2. Pullback Opportunity Setup
For Sell Positions:
- Use the resistance area as the pullback zone. If the 1-hour candle closes within the resistance area, consider taking a sell position.
- Stop Loss: Exit if the 1-hour candle closes above the upper boundary of the pullback area (>2666.11).
- Apply a risk-to-reward ratio of at least 1:1.
For Buy Positions:
- Use the support area as the pullback zone. If the 1-hour candle closes within the support area, consider taking a buy position.
- Stop Loss: Exit if the 1-hour candle closes below the lower boundary of the pullback area (<2604.72).
- Apply a risk-to-reward ratio of at least 1:1.
Always implement sound money management practices to ensure healthy trading habits and remain vigilant against fake breakout candles.