Technical Analysis of GOLD - November 22, 2024

From a technical perspective, GOLD is currently at a price level worth considering for potential entry points. 

Let’s examine the 1-hour time frame GOLD chart below before diving into the analysis:

Price Action Analysis (Trader Pressure)

GOLD appears to be in a bullish trend (uptrend). However, traders must anticipate potential trend reversals if the price breaks the support area or consolidates.

By observing the candle history, we can identify entry opportunities for buying. For a more objective analysis, let’s explore setups for both buy and sell entries.

From the chart, we can see that buyer pressure (long green candles) is gradually pushing the price upward, surpassing seller pressure (short red candles), forming a higher low. This indicates that buyers are still dominating the price levels. Nevertheless, selling opportunities remain present in GOLD.

In the chart, resistance areas are marked by lines above the price (2707.22 – 2694.24), while support areas are indicated by lines below the price (2661.83 – 2650.19).

Recommended Entry Setups

Breakout Setup

1. If the price closes a 1-hour candle above the upper resistance boundary (2707.22), look for the best entry buy opportunity.
2. If the price closes a 1-hour candle below the lower support boundary (2650.19), prepare for the best entry sell opportunity.
3. Use a cut-loss strategy:
   • For buy entries: exit if the 1-hour candle closes below the lower resistance boundary (<2694.24).
   • For sell entries: exit if the 1-hour candle closes above the upper support boundary (>2661.83).
4. Maintain a risk-reward ratio of at least 1:1.

Pullback Setup for Sell

• Utilize the resistance area as the pullback zone. If a 1-hour candle closes within the pullback area, consider taking a sell position.
• Set a stop-loss if the 1-hour candle closes above the upper boundary of the pullback area (>2707.22).
• Use a minimum risk-reward ratio of 1:1 according to your trading style.

Pullback Setup for Buy

• Utilize the support area as the pullback zone. If a 1-hour candle closes within the pullback area, consider taking a buy position.
• Set a stop-loss if the 1-hour candle closes below the lower boundary of the pullback area (<2650.19).
• Use a minimum risk-reward ratio of 1:1 according to your trading style.

Always apply proper money management to ensure sustainable and healthy trading practices. Stay vigilant for fake breakout candles that could mislead your entries.

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

Happy Trading, everyone!

Share: