Technical Analysis of GOLD for October 9, 2024

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

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

Let’s analyze using Price Action (Trader Pressure). In the current trend, GOLD appears to still be in a Bullish/Uptrend state, but we must also anticipate a potential trend reversal if the price breaks through the Support area above and enters price consolidation.

Looking at the candle history, we can find opportunities for a Buy entry, but to be more objective, I'll provide analysis for both Buy and Sell entries. If we look at the chart above, the Buyer pressure (represented by long green candles) is slowly pushing the price up without being significantly countered by Seller pressure (represented by long red candles), forming a Higher Low. This indicates that Buyers are still dominating the formation of certain price levels. However, there are still opportunities to find Sell positions in GOLD.

On the chart, I have identified the Resistance area using lines above the current price (2637.65 – 2631.03), and the Support area using two lines below the current price (2613.85 – 2608.21).

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

Setup for Breakout Opportunity:

• If the 1-Hour candle closes above the Upper Boundary of the Resistance Area (2637.65), be ready to find the best Buy entry position.
• If the 1-Hour candle closes below the Lower Boundary of the Support Area (2608.21), be ready to find the best Sell entry position.
• Cut Loss if the 1-Hour candle closes below the lower boundary of the resistance area (<2631.03) for a Buy entry, and above the Upper Boundary of the Support Area (>2613.85) for a Stop Loss on a Sell entry. Ensure a minimum risk ratio of 1:1.

Setup for Pullback Opportunity (Sell Position):

• Use the Resistance area for pullback. If the 1-Hour candle closes within the pullback area, you can take a Sell position. Cut Loss if the 1-Hour candle closes above the upper boundary of the Pullback area (>2637.65). Use a minimum risk ratio of 1:1, depending on your trading style.

Setup for Pullback Opportunity (Buy Position):

• Use the Support area for pullback. If the 1-Hour candle closes within the pullback area, you can take a Buy position. Cut Loss if the 1-Hour candle closes below the lower boundary of the Pullback area (<2608.21). Use a minimum risk ratio of 1:1, depending on your trading style.

Always apply proper money management with every entry to maintain healthy trading, and stay alert to potential Fake Breakout Candles.

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

Happy Trading, everyone!

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