Technical Analysis of GOLD - November 18, 2024

From a technical perspective, Gold has entered a price range worth considering for potential entry points. 

Let’s analyze the 1-hour timeframe Gold chart below before diving deeper:

Using Price Action analysis (Trader Pressure), the current market trend suggests that Gold remains in a bullish/uptrend. However, we must anticipate possible trend reversals if the price breaches the support area or consolidates.

Observations:

In the historical candlestick patterns, there are opportunities for a buy entry. However, to remain objective, this analysis will present setups for both buy and sell entries.

Based on the chart:

• Buyer Pressure (green candle length) is gradually pushing prices higher, with sellers (red candle length) unable to counter effectively, resulting in the formation of higher lows.
• This indicates that buyers still dominate the price levels. However, sell opportunities may still arise.

Key Levels:

• Resistance Area: 2605.00 – 2590.20
• Support Area: 2547.80 – 2532.40

Suggested Entry Setups:

Breakout Opportunity:

1. Buy Setup:

   • If a 1-hour candle closes above the upper resistance level (2605.00), look for the best entry point for a buy position.

2. Sell Setup:

   • If a 1-hour candle closes below the lower support level (2532.40), prepare for a sell position.

3. Stop Loss:

   • For a buy entry, place a stop loss below the lower resistance boundary (<2590.20).
   • For a sell entry, place a stop loss above the upper support boundary (>2547.80).
   • Maintain a risk-to-reward ratio of at least 1:1.

Pullback Opportunity:

1. Sell Setup:

   • If the price closes within the pullback area around resistance, consider entering a sell position.
   • Place a stop loss above the upper pullback boundary (>2605.00).
   • Use a risk-to-reward ratio of at least 1:1.

2. Buy Setup:

   • If the price closes within the pullback area around support, consider entering a buy position.
   • Place a stop loss below the lower pullback boundary (<2532.40).
   • Use a risk-to-reward ratio of at least 1:1.

Always employ proper money management to sustain healthy trading and remain vigilant against fake breakout candles.

Hopefully, this analysis can serve as a helpful reference for your market strategies.

Happy trading, everyone!

Share: