Technical Analysis for GOLD on October 30, 2024

From a technical perspective, Gold currently presents a potentially viable price point for entry consideration. 

Let’s first review the 1-hour time frame Gold chart below to inform our analysis.

We'll use Price Action analysis (Trader Pressure) to gauge market trends. The chart reveals that Gold remains in a Bullish/Uptrend; however, it’s essential to prepare for a trend reversal if the price breaks through the Support area above or enters consolidation.

In the candle history, there are entry opportunities for Buy positions. To stay objective, though, I’ll outline both buy and sell entry analyses. Looking at the chart, we see that Buyer pressure (indicated by long green candles) is gradually pushing the price up, which Seller pressure (shown by long red candles) has yet to counter. This formation of Higher Lows indicates that Buyers are still dominating key price levels. However, sell opportunities may still arise within Gold.

In the chart, I’ve marked a Resistance area with lines above the price (2793.08 – 2785.08) and a Support area with lines below the price (2763.32 – 2755.98).

Here’s my entry setup selection; feel free to adjust to match your trading style:

Breakout Opportunity Setup:

• If the 1-hour candle closes above the top Resistance Area (2793.08), prepare to find the best Entry Buy position.
• If the 1-hour candle closes below the bottom Support Area (2755.98), prepare to look for the best Entry Sell position.
• For a Buy entry, set a Cut Loss if the 1-hour candle closes below the lower resistance boundary (<2785.08). For a Sell entry, set a Stop Loss if it closes above the upper Support boundary (>2763.32). Use a minimum risk ratio of 1:1.

Pullback Setup for Sell Position:

• Use the Resistance area for pullbacks. If a 1-hour candle closes within this pullback area, a Sell position can be entered. Set a Cut Loss if the 1-hour candle closes above the top pullback boundary (>2793.08). Apply a minimum 1:1 risk ratio according to your trading strategy.

Pullback Setup for Buy Position:

• Use the Support area for pullbacks. If a 1-hour candle closes within this pullback area, a Buy position can be taken. Set a Cut Loss if the 1-hour candle closes below the bottom pullback boundary (<2755.98). Again, use a minimum 1:1 risk ratio in line with your trading method.

Always apply proper money management in every entry to ensure sustainable trading and remain cautious of potential Fake Breakout candles.

Hope this analysis serves as a helpful reference for your market trading.

Happy Trading, everyone!

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