Technical Analysis of GOLD - November 13, 2024

From a technical perspective, Gold appears to be in a price position worth considering for potential entry points. 

Let’s take a look at the 1-Hour Gold chart below before proceeding with the analysis.

We’ll use Price Action analysis (Trader Pressure) here. The market trend indicates that GOLD is still in a bullish or uptrend condition, though it’s essential to anticipate a possible trend reversal if the price breaks through the support area above or consolidates.

In the candlestick history, there are potential buy entry opportunities. However, to remain objective, I’ll present analysis options for both buy and sell entries.

Looking at the chart, we see that the buyer pressure (represented by long green candles) is gradually pushing prices upward, with seller pressure (red candles) unable to counteract effectively, forming higher lows. This suggests that buyers still dominate the formation of certain price levels, though sell opportunities may also be found within the GOLD commodity.

On the chart, I’ve marked the resistance area with a line above the price (2639.97 – 2625.35), and the support area with two lines below the price (2588.10 – 2575.15).

Here’s my recommended entry setup, which you can adjust to fit your trading style:

Setup for breakout opportunity:

• If the price closes on a 1-Hour candle above the upper resistance boundary (2639.97), look for the best buy entry position.
• If the price closes on a 1-Hour candle below the lower support boundary (2575.15), look for the best sell entry position.

Cut Loss:

• For a buy entry, exit if the 1-Hour candle closes below the lower resistance boundary (<2625.35).
• For a sell entry, exit if the 1-Hour candle closes above the upper support boundary (>2588.10).
• Maintain a minimum risk-to-reward ratio of 1:1.

Setup for pullback sell position:

• Use the resistance area as the pullback area. If a 1-Hour candle closes within this pullback area, you can take a sell position. Cut loss if the 1-Hour candle closes above the upper pullback boundary (>2639.97), maintaining a minimum risk-to-reward ratio of 1:1 in line with your trading method.

Setup for pullback buy position:

• Use the support area as the pullback area. If a 1-Hour candle closes within this pullback area, you can take a buy position. Cut loss if the 1-Hour candle closes below the lower pullback boundary (<2575.15), maintaining a minimum risk-to-reward ratio of 1:1 in line with your trading method.

Remember to apply sound money management on every entry for sustainable trading, and stay vigilant against potential fake breakout candles.

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

Happy trading, everyone!

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