Technical Analysis of GOLD – October 14, 2024

From a technical standpoint, I see that the Gold commodity has reached a price level that is worth considering for an entry point. 

Let’s take a look at the 1-hour time frame chart of Gold below before we begin the analysis:\

Let's analyze using Price Action (Trader's Pressure):

In the current market trend, Gold still appears to be in a bullish/uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the support area mentioned above or if consolidation occurs.

Analyzing the candle history:

We can look for potential buy entries, but to remain objective, I will present an analysis for both buy and sell entries. As seen in the chart above, the buying pressure (long green candles) is gradually pushing the price higher, with little resistance from selling pressure (long red candles), forming higher lows. This indicates that buyers are still dominating the formation of specific price levels. However, sell opportunities can still be found in Gold.

In the chart, I’ve marked the Resistance Area with lines above the price (2669.71 – 2664.29), and for the Support Area, we can observe two lines below the price (2649.26 – 2643.03).

My Entry Setup Options (adjust according to your trading style):

1. Breakout Opportunity Setup:

• If the 1-hour candle closes above the upper boundary of the Resistance Area (2669.71), be ready to look for the best buy entry position.
• If the 1-hour candle closes below the lower boundary of the Support Area (2643.03), be prepared to look for the best sell entry position.
• Cut Loss: If the 1-hour candle closes below the lower boundary of the resistance area (<2664.29) for a buy entry, and above the upper boundary of the support area (>2649.26) for a stop loss on a sell entry. Always apply a minimum risk-reward ratio of 1:1.

2. Pullback Setup for a Sell Position:

• The pullback area is the resistance zone. If the 1-hour candle closes within this pullback area, you can take a sell position. Use a Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2669.71). Apply a minimum risk-reward ratio of 1:1 according to your trading style.

3. Pullback Setup for a Buy Position:

• The pullback area is the support zone. If the 1-hour candle closes within this pullback area, you can take a buy position. Use a Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2643.03). Apply a minimum risk-reward ratio of 1:1 according to your trading style.

Always implement good money management in every entry to ensure sustainable and healthy trading, and remain cautious of fake breakout candles. 

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

Happy Trading, everyone! 

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