Technical Analysis of GOLD - October 10, 2024

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

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

Let's analyze using Price Action (Trader Pressure) techniques. In the current market trend, GOLD remains in a bullish/uptrend condition. However, we must also be prepared for a trend reversal if the price breaks through the support area shown above, or if consolidation occurs.

In the candle history, we can identify opportunities for a buy entry, but to be more objective, I will present an analysis for both buy and sell entries. Looking at the chart above, the buyer's pressure (represented by long green candles) has gradually pushed the price higher without significant resistance from the sellers (represented by long red candles), forming a higher low.

This indicates that buyers still dominate the formation of certain price levels. However, sell opportunities can still be found in this GOLD commodity.

In the chart, I’ve marked the resistance area with lines above the price (2624.62 – 2618.25), and the support area can be seen with two lines below the price (2600.03 – 2593.05).

My Entry Setup Suggestions (You can adjust according to your trading style):

1. Breakout Opportunity Setup:

   • If the price on the 1-hour candle closes above the upper boundary of the resistance area (2624.62), be ready to find the best buy entry position.
   • If the price on the 1-hour candle closes below the lower boundary of the support area (2593.05), be prepared to look for the best sell entry position.
   • For a buy entry, place a stop loss if the price on the 1-hour candle closes below the lower boundary of the resistance area (<2618.25), and for a sell entry, place a stop loss if the price on the 1-hour candle closes above the upper boundary of the support area (>2600.03). Ensure to use a risk ratio of at least 1:1.

2. Pullback Setup for a Sell Position:

   • Use the resistance area as the pullback zone. If the 1-hour candle closes within the pullback area, consider taking a sell position. Cut your losses if the price on the 1-hour candle closes above the upper boundary of the pullback area (>2624.62). Maintain a minimum risk ratio of 1:1 according to your trading strategy.

3. Pullback Setup for a Buy Position:

   • Use the support area as the pullback zone. If the 1-hour candle closes within the pullback area, you can take a buy position. Cut your losses if the price on the 1-hour candle closes below the lower boundary of the pullback area (<2593.05). Use a risk ratio of at least 1:1 based on your trading approach.

Always practice good money management with every entry to ensure healthy trading and stay alert for fake breakout candles.

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

Happy Trading, everyone!

Share: