Technical Analysis of GOLD – October 16, 2024

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

Let’s take a look at the 1-hour timeframe Gold chart below before diving into the analysis:

Using Price Action analysis (Trader's Pressure), the trend shows that GOLD is still in a bullish/uptrend condition. However, we must also anticipate a trend reversal if the price breaks through the support area above, or if the price consolidates.

By reviewing the candle history, we can identify potential buy opportunities, but to remain objective, I will present an analysis for both buy and sell entries. If we observe the chart above, the buyer's pressure (long green candles) is gradually pushing the price upward, with no significant resistance from the seller’s pressure (red candles), forming higher lows.

This indicates that buyers are still dominating the formation of key price levels. However, sell opportunities can still be found in this GOLD commodity. On the chart, I’ve marked the resistance area with lines above the price (2672.82 – 2667.69), and for the support area, we can observe two lines below the price (2652.82 – 2646.88).

Here are my suggested entry setups, which you can adjust based on your trading style:

1. Breakout Opportunity Setup:

• If the 1-hour candle closes above the upper limit of the resistance area (2672.82), prepare to find the best buy entry position.
• If the 1-hour candle closes below the lower limit of the support area (2646.88), prepare to find the best sell entry position.
• Cut Loss if the 1-hour candle closes below the lower boundary of the resistance area (<2667.69) for a buy entry, or above the upper boundary of the support area (>2652.82) for a sell entry stop loss. Use a minimum risk ratio of 1:1.

2. Pullback Setup for Sell Positions:

• Use the resistance area for pullback setups. If the 1-hour candle closes within the pullback area, you can take a sell position and cut loss if the 1-hour candle closes above the upper boundary of the pullback area (>2672.82). Use a minimum risk ratio of 1:1 according to your trading style.

3. Pullback Setup for Buy Positions:

• Use the support area for pullback setups. If the 1-hour candle closes within the pullback area, you can take a buy position and cut loss if the 1-hour candle closes below the lower boundary of the pullback area (<2646.88). Use a minimum risk ratio of 1:1 according to your trading style.

Always apply good money management practices in every entry to ensure healthy trading continuity, and be 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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