Technical Analysis of GOLD – 15 October 2024

Technically, I see that Gold has reached a price position that is still worth considering for an entry point. 

Let's take a look at the 1-hour time frame chart of Gold before diving into the analysis:

We will analyze using Price Action (Trader Pressure) analysis. In the current market trend, Gold appears to be in a Bullish/Uptrend condition, but we must also anticipate a potential trend reversal if the price breaks through the Support area above, or if there is price consolidation.

In the candle history, we can look for Buy entry opportunities, but to be more objective, I will present an analysis for both buy and sell entries.

Looking at the chart above, the Buyer pressure (green candle length) is gradually pushing the price higher, without being resisted much by Seller pressure (red candle length), forming Higher Lows. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities can still be found in this Gold commodity.

In the chart, I have identified a Resistance area using lines above the price (2663.09 – 2657.42), and for the Support area, we can observe it through two lines below the price (2642.69 – 2636.74).

Here are my suggested entry setups, which you can adapt to your trading style:

Breakout Opportunity Setup:

• If the 1-hour candle closes above the Upper Resistance Area (2663.09), be prepared to find the best Buy entry position.
• If the 1-hour candle closes below the Lower Support Area (2636.74), be ready to look for the best Sell entry position.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the resistance area (<2657.42) for a buy entry, and above the Upper Support Area (>2642.69) for a stop loss on a sell entry. Apply a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell:

• Use the resistance area as the pullback zone. If the 1-hour candle closes within this area, you may take a Sell position and set a Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2663.09). Use a minimum risk-reward ratio of 1:1, according to your trading style.

Pullback Setup for Buy:

• Use the support area as the pullback zone. If the 1-hour candle closes within this area, you may take a Buy position and set a Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2636.74). Use a minimum risk-reward ratio of 1:1, according to your trading style.

Always maintain good money management in every entry to ensure healthy trading practices, and stay alert for Fake Breakout Candles.

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

Happy Trading, everyone!

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