Technical Analysis of GOLD - November 11, 2024

Technically, Gold appears to be at a price level worth considering for entry points. 

Let’s review the 1-Hour Time Frame Gold chart below before analyzing further.

We’ll use Price Action analysis (Trader Pressure) to evaluate the trend. Currently, Gold is in a Bullish/Uptrend market, but we must also anticipate a potential trend reversal if the price breaks through the Support area above, or if consolidation occurs.

In candle history, we can identify potential Buy entries, but to be more objective, I’ll provide analysis for both Buy and Sell entries.

From the chart, the Buyer pressure (long green candles) is gradually pushing the price up, overcoming Seller pressure (long red candles) and creating Higher Lows. This indicates that Buyers are still dominant in forming certain price levels. However, there are still Sell opportunities within this commodity.

In the chart, I’ve marked the Resistance area with lines above the price (2714.79 - 2701.75), and for Support, we can refer to the two lines below the price (2667.66 - 2654.32).

My Suggested Entry Setups (Adjust Based on Your Trading Style)

Breakout Opportunity Setup

• If the 1-Hour candle closes above the Upper Boundary of the Resistance Area (2714.79), prepare to look for the best Buy entry.
• If the 1-Hour candle closes below the Lower Boundary of the Support Area (2654.32), prepare to look for the best Sell entry.
• Set Cut Loss if the 1-Hour candle closes below the lower boundary of the resistance area (<2701.75) for a Buy entry and above the upper boundary of the Support Area (>2667.66) for a Stop Loss on Sell entries. Maintain a minimum risk ratio of 1:1.

Pullback Setup for 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. Set Cut Loss if the 1-Hour candle closes above the upper boundary of the Pullback area (>2714.79). Use a minimum risk ratio of 1:1, according to your trading style.

Pullback Setup for Buy Position

• Use the support area as the pullback zone; if the 1-Hour candle closes within the pullback area, consider taking a Buy position. Set Cut Loss if the 1-Hour candle closes below the lower boundary of the Pullback area (<2654.32). Use a minimum risk ratio of 1:1, in line with your trading strategy.

Always apply proper money management for sustainable trading, and stay alert for Fake Breakout Candles.

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

Happy Trading, everyone!

Share: