Technical Analysis of GOLD for October 8, 2024

From a technical perspective, I observe that Gold is currently at a price level worth considering for potential entry points. 

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

Let's analyze this using Price Action (Trader Pressure). In the market trend, Gold is still in a Bullish/Uptrend condition. However, we also need to anticipate a potential trend reversal if the price breaks through the support area mentioned above or enters a consolidation phase.

Looking at the candle history, we can identify opportunities for a Buy entry. However, to be more objective, I will present an analysis for both buy and sell entries.

From the chart above, the Buyer pressure (long green candles) is gradually pushing the price higher without much resistance from Seller pressure (long red candles), forming a Higher Low. This indicates that Buyers are still dominating the formation of certain price levels. However, selling opportunities can still be found in this Gold commodity.

In the chart, I have identified a Resistance area using lines above the price (2656.65 – 2651.10), and for the Support area, we can observe two lines below the price (2635.68 – 2630.62).

Here are my potential setup options, which you can adjust to your trading style:

Breakout Opportunity Setup:

• If the 1-Hour candle closes above the Upper Limit of the Resistance Area (2656.65), be ready to look for the best Buy entry.
• If the 1-Hour candle closes below the Lower Limit of the Support Area (2630.62), be prepared to look for the best Sell entry.
• Cut Loss: For a Buy entry, if the 1-Hour candle closes below the lower limit of the resistance area (<2651.10), exit the trade. For a Sell entry, if the 1-Hour candle closes above the upper limit of the support area (>2635.68), exit the trade. Use a risk-reward ratio of at least 1:1.

Pullback Setup for Sell Position:

• Use the Resistance area for the pullback. If the 1-Hour candle closes within this pullback area, you can take a Sell position. Cut Loss if the 1-Hour candle closes above the upper limit of the Pullback area (>2656.65). Use a risk-reward ratio of at least 1:1 based on your trading strategy.

Pullback Setup for Buy Position:

• Use the Support area for the pullback. If the 1-Hour candle closes within this pullback area, you can take a Buy position. Cut Loss if the 1-Hour candle closes below the lower limit of the Pullback area (<2630.62). Use a risk-reward ratio of at least 1:1 according to your trading style.

Always apply proper money management in every entry for sustainable 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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