Technical Analysis of GOLD on October 11, 2024

Technically, I see that Gold has reached a price level that is still worth considering for a potential entry point. 

Let's first take a look at the 1-hour time frame Gold chart before diving into the analysis:

Let's analyze this using Price Action (Trader Pressure) analysis. In the market trend, Gold still appears to be in a Bullish/Uptrend, but we also need to anticipate a trend reversal if the price breaks through the Support area above or if the price consolidates.

In the candle history, we can look for Buy entry opportunities. However, to remain objective, I will provide an analysis for both buy and sell entries.

Looking at the chart above, the Buyer pressure (long green candles) gradually pushed the price higher, without being countered by significant Seller pressure (short red candles), forming a Higher Low. This indicates that Buyers are still dominating the formation of certain price levels. However, Sell opportunities may still arise in this Gold commodity.

In the chart, I identified a Resistance area through the lines above the price (2652.34 – 2645.12). For the Support area, you can see two lines below the price (2625.86 – 2618.92).

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

Breakout Opportunity Setup:

• If the 1-hour candle closes above the upper boundary of the Resistance area (2652.34), be ready to look for the best Buy entry position.
• If the 1-hour candle closes below the lower boundary of the Support area (2618.92), be ready to look for the best Sell entry position.
• For a Buy entry, place a stop loss if the 1-hour candle closes below the lower boundary of the Resistance area (<2645.12). For a Sell entry, place a stop loss if the 1-hour candle closes above the upper boundary of the Support area (>2625.86). Always aim for a risk-reward ratio of at least 1:1.

Pullback Setup for Sell Position:

• Use the Resistance area for a pullback setup. If the 1-hour candle closes within the pullback area, you can take a Sell position and cut your losses if the 1-hour candle closes above the upper boundary of the pullback area (>2652.34). Use a risk-reward ratio of at least 1:1 based on your trading strategy.

Pullback Setup for Buy Position:

• Use the Support area for a pullback setup. If the 1-hour candle closes within the pullback area, you can take a Buy position and cut your losses if the 1-hour candle closes below the lower boundary of the pullback area (<2618.92). Use a risk-reward ratio of at least 1:1 based on your trading strategy.

Always use proper money management in every trade to ensure long-term trading success, and stay alert for potential Fake Breakout candles.

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

Happy Trading, everyone!

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