Technical Analysis of GOLD – December 20, 2024

From a technical perspective, I see that the GOLD commodity is currently at a price level worth considering for potential entry points.

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

Using Price Action (Trader Pressure) analysis, we can observe that GOLD remains in a bullish/uptrend. However, it’s important to anticipate a possible trend reversal if the price breaks the support area or enters a consolidation phase.

Looking at the candle history, there are opportunities for buy entries, but to remain objective, I will provide an analysis for both buy and sell entries.

From the chart above, buyer pressure (represented by long green candles) has gradually pushed the price higher, with minimal resistance from sellers (shorter red candles), forming higher lows. This indicates that buyers continue to dominate price formation at certain levels. However, sell opportunities can still be found within the GOLD market.

Key Levels:

• Resistance Area: Marked above the current price, between 2623.15 – 2610.53.
• Support Area: Marked below the current price, between 2676.07 – 2662.45.

Entry Setup Options:

1. Breakout Opportunity Setup

• If the 1-hour candle closes above the upper boundary of the resistance area (2623.15), prepare to find the best buy entry.
• If the 1-hour candle closes below the lower boundary of the support area (2662.45), prepare to find the best sell entry.
• Stop Loss (Cut Loss):
  • For buy entries: If the 1-hour candle closes below 2610.53 (the lower resistance boundary).
  • For sell entries: If the 1-hour candle closes above 2676.07 (the upper support boundary).
• Apply a minimum risk-to-reward ratio of 1:1 for all trades.

2. Pullback Setup for Sell Entries

• Use the resistance area as the pullback zone.
• If the 1-hour candle closes within the pullback area, consider taking a sell position.
• Cut Loss: If the 1-hour candle closes above 2623.15 (the upper boundary of the pullback area).
• Apply a minimum risk-to-reward ratio of 1:1.

3. Pullback Setup for Buy Entries

• Use the support area as the pullback zone.
• If the 1-hour candle closes within the pullback area, consider taking a buy position.
• Cut Loss: If the 1-hour candle closes below 2662.45 (the lower boundary of the pullback area).
• Apply a minimum risk-to-reward ratio of 1:1.

Always implement proper money management to maintain sustainable trading practices. Stay vigilant against potential fake breakout candles to avoid unnecessary losses.

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

Happy trading, everyone!

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