Technical Analysis of GOLD on November 14, 2024

Technically, the GOLD commodity is now at a price level worth considering for potential entry points. 

Let’s take a look at the 1-hour time frame GOLD chart below before diving into the analysis.

Using Price Action analysis (Trader Pressure), we observe that GOLD is still in a Bullish/Uptrend condition, but we should also prepare for a potential trend reversal if the price breaks the Support area above and enters consolidation.

In candle history, we can identify opportunities for Buy entries. To stay objective, I'll present an analysis for both Buy and Sell entries.

If we look at the chart above, Buyer pressure (long Green candles) is gradually pushing the price upward without being challenged by Seller pressure (long Red candles), forming a Higher Low. This suggests that Buyers still dominate the establishment of certain price levels. However, Sell opportunities can still be found in this GOLD commodity.

In the chart, I’ve marked a Resistance area with lines above the price level (2605.00 – 2590.20). For the Support area, you can see two lines below the price level (2547.80 – 2532.40).

Entry Setup Options to Match Your Trading Style:

1. Breakout Opportunity Setup:

• If the price closes a 1-hour candle above the Upper Boundary of the Resistance Area (2605.00), prepare to find the best Buy entry position.
• If the price closes a 1-hour candle below the Lower Boundary of the Support Area (2532.40), prepare to find the best Sell entry position.
• Use a Stop Loss strategy:
  • For Buy entries, set a Cut Loss if the 1-hour candle closes below the lower boundary of the Resistance Area (<2590.20).
  • For Sell entries, set a Cut Loss if the 1-hour candle closes above the upper boundary of the Support Area (>2547.80).
• Use a minimum 1:1 risk-reward ratio.

2. Pullback Setup for Sell Positions:

• If the price closes a 1-hour candle within the Resistance area, consider taking a Sell position. Use a Cut Loss if the 1-hour candle closes above the upper boundary of the Pullback area (>2605.00). Maintain a minimum 1:1 risk-reward ratio to align with your trading strategy.

3. Pullback Setup for Buy Positions:

• If the price closes a 1-hour candle within the Support area, consider taking a Buy position. Use a Cut Loss if the 1-hour candle closes below the lower boundary of the Pullback area (<2532.40). Maintain a minimum 1:1 risk-reward ratio to align with your trading strategy.

Always apply solid money management for sustainable trading, and stay alert for potential Fake Breakout candles. 

I hope this article provides a valuable reference for your market analysis.

Happy Trading, everyone!

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