Technical Analysis of GOLD on October 23, 2024

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

Let's first review the 1-hour time frame Gold chart below before diving into the analysis:

We will analyze using Price Action (Trader Pressure) analysis. In the current market trend, Gold remains in a bullish/uptrend condition, but we must also anticipate a trend reversal if the price breaks through the support area above or consolidates.

Looking at the candle history, there are opportunities to enter a buy position. However, to remain objective, I will present an analysis for both buy and sell entries. From the chart above, we can observe that buyer pressure (long green candles) has gradually pushed prices upward, overpowering seller pressure (red candles) and forming higher lows. This indicates that buyers are still dominating the price levels. Nonetheless, there are still selling opportunities in Gold.

In the chart, I have identified the resistance area with the line above the price (2765.59 – 2755.76), while the support area can be observed through the two lines below the price (2729.51 – 2721.10).

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

Breakout Opportunity Setup:

• If the price closes a 1-hour candle above the upper resistance area (2765.59), be ready to look for the best buy entry position.
• If the price closes a 1-hour candle below the lower support area (2721.10), prepare to find the best sell entry position.
• Implement a stop-loss strategy: exit the buy position if the 1-hour candle closes below the lower boundary of the resistance area (<2755.76), and exit the sell position if the candle closes above the upper boundary of the support area (>2729.51). Always use a minimum risk ratio of 1:1.

Pullback Setup for a Sell Position:

• Use the resistance area for pullback. If the price closes a 1-hour candle within this area, you can enter a sell position. Set a stop-loss if the price closes above the upper boundary of the pullback area (>2765.59). Use a minimum risk ratio of 1:1 in line with your trading strategy.

Pullback Setup for a Buy Position:

• Use the support area for pullback. If the price closes a 1-hour candle within this area, you can enter a buy position. Set a stop-loss if the price closes below the lower boundary of the pullback area (<2721.10). Again, use a minimum risk ratio of 1:1 according to your trading plan.

Always apply good money management practices to ensure healthy and sustainable trading, and stay alert for potential fake breakouts.

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

Happy trading, everyone!

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