Technical Analysis of GOLD - 17 October 2024

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

Let's take a look at the 1-Hour Time Frame Gold chart below before we dive into the analysis:

We'll use Price Action analysis (Trader’s Pressure) to evaluate this chart. In the current trend, GOLD is still in a bullish/uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks the support area above, as well as any price consolidation.

In the candle history, there are opportunities for a Buy entry, but to remain objective, I will present both Buy and Sell entry analyses.

Looking at the chart above, the Buyer pressure (as indicated by the length of the Green candles) is gradually pushing the price upward, without being countered by Seller pressure (as indicated by the length of the Red candles), forming Higher Lows. This indicates that Buyers are still dominating the price levels being formed. However, there are still Sell opportunities to be found in the GOLD commodity.

In the chart, I have identified the Resistance area with lines above the price (2695.15 – 2688.64), and for the Support area, we can observe two lines below the price (2671.33 – 2664.37).

Here are my setup options for entries, which you can adjust according to your trading style:

1. Breakout Opportunity Setup:

   • If the 1-Hour candle closes above the Upper Boundary of the Resistance Area (2695.15), prepare to look for the best Buy entry positions.
   • If the 1-Hour candle closes below the Lower Boundary of the Support Area (2664.37), prepare to look for the best Sell entry positions.
   • Cut loss if the 1-Hour candle closes below the lower boundary of the resistance area (<2688.64) for Buy entries, or above the upper boundary of the support area (>2671.33) for Stop Loss on Sell entries. Ensure to apply a risk ratio of at least 1:1.

2. Pullback Setup for Sell Positions:

   • Use the resistance area for a pullback entry. If the 1-Hour candle closes within the pullback area, you can take a Sell position and cut loss if the 1-Hour candle closes above the upper boundary of the pullback area (>2695.15). Apply a risk ratio of at least 1:1 according to your trading strategy.

3. Pullback Setup for Buy Positions:

   • Use the support area for a pullback entry. If the 1-Hour candle closes within the pullback area, you can take a Buy position and cut loss if the 1-Hour candle closes below the lower boundary of the pullback area (<2664.37). Apply a risk ratio of at least 1:1 according to your trading strategy.

Always use proper money management in every entry to ensure sustainable and healthy trading, and remain cautious of Fake Breakout candles.

I hope this article can serve as a reference for your market analysis.

Happy Trading, everyone!

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