Technical Analysis of GOLD - November 5, 2024

From a technical perspective, I observe that GOLD has reached a price level suitable for entry points worth considering. 

Let's first examine the 1-hour timeframe chart for GOLD before we proceed with the analysis:

Using a Price Action (Trader Pressure) approach, we can see that GOLD remains in a bullish or uptrend condition. However, we should anticipate a potential trend reversal if the price breaks below the support area and a consolidation phase. In the candle history, we can look for buy entry opportunities. However, to remain objective, I’ll provide an analysis for both buy and sell entry points.

Looking at the chart above, the pressure from buyers (shown by the length of green candles) gradually pushes the price upward, without significant counteraction from sellers (red candle length), resulting in higher lows. This suggests that buyers are still dominating the formation of certain price levels. Nonetheless, sell opportunities may still emerge in GOLD.

On the chart, I have identified the resistance area through lines above the price level (2752.29 – 2744.89), and the support area with two lines below the price level (2727.80 – 2721.56).

Here are my entry setups, which you can adapt to fit your trading style:

Setup for Breakout Opportunities:

• If the 1-hour candle closes above the upper resistance boundary (2752.29), prepare to look for the best buy entry position.
• If the 1-hour candle closes below the lower support boundary (2721.56), prepare to look for the best sell entry position.
• Set a stop loss if the 1-hour candle closes below the lower resistance boundary (<2744.89) for buy entries and above the upper support boundary (>2727.80) for sell entries. Use a minimum risk-reward ratio of 1:1.

Setup for Pullback Entry:

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 a stop loss if the 1-hour candle closes above the upper pullback boundary (>2752.29). Follow a minimum risk-reward ratio of 1:1 as per your trading style.

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 a stop loss if the 1-hour candle closes below the lower pullback boundary (<2721.56). Follow a minimum risk-reward ratio of 1:1 as per your trading style.

Maintain solid money management with every entry for sustainable trading, and stay vigilant for fake breakout candles.

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

Happy Trading!

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