From a technical standpoint, GOLD has reached a price level worth considering for potential entry points.
Before we dive into the analysis, let’s review the 1-hour time frame chart for GOLD.
Using Price Action (Trader Pressure) analysis, the market trend shows GOLD is still in a Bullish/Uptrend phase. However, we should be prepared for a possible trend reversal if the price breaks through the support area above, as well as potential price consolidation.
Analyzing the candle history, there are opportunities to look for Buy entries. To maintain objectivity, this analysis will cover both buy and sell entry options.
As seen in the chart, buyer pressure (long green candles) is gradually pushing the price higher, with sellers unable to counter effectively, forming Higher Lows. This suggests buyers are still dominating specific price levels. However, sell opportunities remain viable in GOLD.
The chart shows resistance marked by lines above the price (2758.41 - 2752.07) and support by lines below the price (2733.63 - 2726.70).
Entry Setup Options – Adapted to Your Trading Style
Breakout Opportunity Setup
- If the 1-hour candle closes above the upper boundary of the Resistance Area (2758.41), consider looking for the best entry buy position.
- If the 1-hour candle closes below the lower boundary of the Support Area (2726.70), prepare to look for the best entry sell position.
- Cut Loss: For a buy entry, if the 1-hour candle closes below the lower resistance boundary (<2752.07). For a sell entry, if it closes above the upper support boundary (>2733.63).
- Ensure a minimum 1:1 risk-reward ratio.
Pullback Setup for a Sell Position
- Use the resistance area for pullbacks. If the 1-hour candle closes within this pullback area, consider entering a sell position.
- Set a Cut Loss if the 1-hour candle closes above the upper pullback area (>2758.41).
- Follow your trading style with a minimum 1:1 risk ratio.
Pullback Setup for a Buy Position
- Use the support area for pullbacks. If the 1-hour candle closes within this pullback area, consider a buy position.
- Set a Cut Loss if the 1-hour candle closes below the lower pullback area (<2726.70).
- Follow your trading style with a minimum 1:1 risk ratio.
Always apply good money management with each entry for sustainable trading. Remain cautious of fake breakout candles.
Hope this article helps with your market analysis.
Happy Trading, everyone!