Technical Analysis of GOLD for October 31, 2024

From a technical perspective, Gold has reached a price level worth considering for entry points. 

Let’s examine the 1-Hour Time Frame Gold chart below before proceeding with further analysis:

Using Price Action analysis (Trader Pressure), Gold appears to be in a Bullish/Uptrend market condition. However, we must also prepare for a possible trend reversal if the price breaks through the Support area above, as well as potential price consolidation.

Based on candle history, we can look for Buy entry opportunities. However, to be more objective, I will provide an analysis for both Buy and Sell entries. Looking at the chart, Buyer pressure (long Green candles) is gradually pushing the price upward without resistance from Seller pressure (long Red candles), creating Higher Lows. This suggests that Buyers are still dominating certain price levels. However, Sell opportunities can still be found in this Gold commodity.

On the chart, I have marked the Resistance area with lines above the price level (2804.37 – 2796.67) and the Support area with lines below the price level (2778.75 – 2771.85).

Here are my entry 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 (2804.37), prepare to seek the best Buy entry position.
• If the 1-Hour candle closes below the Lower Limit of the Support Area (2771.85), prepare to seek the best Sell entry position.
• Set a Cut Loss if the 1-Hour candle closes below the lower boundary of the Resistance area (<2796.67) for a Buy entry, and above the Upper Limit of the Support Area (>2778.75) for a Sell entry Stop Loss. Use a minimum risk ratio of 1:1.

Pullback Setup for Sell Position:

• The Pullback Area uses the Resistance zone; if the 1-Hour candle closes within the pullback area, you can take a Sell position and set a Cut Loss if the 1-Hour candle closes above the pullback’s upper boundary (>2804.37). Use a minimum risk ratio of 1:1 in line with your trading method.

Pullback Setup for Buy Position:

• The Pullback Area uses the Support zone; if the 1-Hour candle closes within the pullback area, you can take a Buy position and set a Cut Loss if the 1-Hour candle closes below the pullback’s lower boundary (<2771.85). Use a minimum risk ratio of 1:1 according to your trading method.

Always practice good money management with each 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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