Technical Analysis of GOLD – November 7, 2024

From a technical perspective, GOLD has reached a price level worth considering for potential entry points. 

Let’s review the 1-hour timeframe chart of GOLD before diving into the analysis:

Using Price Action analysis (Trader Pressure), the market trend shows that GOLD is still in a Bullish/Uptrend phase. However, it’s also essential to anticipate a potential trend reversal if the price breaks the Support area above or enters a consolidation phase.

Looking at the candle history, there are opportunities for Buy entries, but to keep things objective, I'll outline potential setups for both Buy and Sell entries.

In the chart, we see that the Buyer pressure (represented by longer green candles) is gradually pushing the price up, while Seller pressure (long red candles) hasn’t been able to counter this, forming a Higher Low. This indicates that Buyers are still dominating specific price levels. However, Sell opportunities can still be found within GOLD.

On the chart, I’ve marked the Resistance area with lines above the price (2681.30 – 2665.88), while the Support area is indicated by two lines below the price (2627.12 – 2611.56).

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

Breakout Opportunity Setup:

• If the price closes a 1-hour candle above the Resistance area’s upper boundary (2681.30), look for the best Buy entry.
• If the price closes a 1-hour candle below the Support area’s lower boundary (2611.56), look for the best Sell entry.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the Resistance area (<2665.88) for Buy entries, or above the Support area’s upper boundary (>2627.12) for Sell entries. Aim for a minimum risk ratio of 1:1.

Pullback Setup for a Sell Position:

• Use the resistance area as a Pullback zone. If the 1-hour candle closes within the pullback area, you can take a Sell position and set a Cut Loss if the price closes above the upper boundary of the Pullback area (>2681.30). Apply a minimum risk ratio of 1:1 according to your trading approach.

Pullback Setup for a Buy Position:

• Use the support area as a Pullback zone. If the 1-hour candle closes within the pullback area, you can take a Buy position and set a Cut Loss if the price closes below the lower boundary of the Pullback area (<2611.56). Apply a minimum risk ratio of 1:1 according to your trading approach.

Always maintain good money management for sustainable trading and stay alert for potential Fake Breakout Candles. 

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

Happy Trading, everyone!

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