Technical Analysis of GOLD – December 5, 2024

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

Let’s take a closer look at the 1-Hour Timeframe Gold chart before diving into the analysis:

Price Action Analysis 

Based on market trends, GOLD remains in a Bullish/Uptrend condition. However, it’s essential to anticipate a potential trend reversal if the price breaks below the Support area or consolidates further.

From the candlestick history, we can identify opportunities for Buy entries. To remain objective, I’ll provide analysis for both Buy and Sell entries.

In the chart, the dominance of Buyers is evident from the longer green candles, which consistently push the price higher, creating a series of Higher Lows. This indicates that Buyers are still driving price movements. Nevertheless, Sell opportunities are also possible within Gold.

Key Levels

• Resistance Area: 2669.22 – 2659.27
• Support Area: 2636.14 – 2626.65

Suggested Entry Setups

Below are my proposed setups, which you can adjust to fit your trading style:

Breakout Opportunity

1. Buy Setup:
   • If the 1-hour candle closes above the Resistance Area's upper boundary (2669.22), look for the best Buy entry.
   • Cut Loss: Place a stop-loss if the price closes below the lower boundary of the Resistance Area (<2659.27).
2. Sell Setup:
   • If the 1-hour candle closes below the Support Area's lower boundary (2626.65), look for the best Sell entry.
   • Cut Loss: Place a stop-loss if the price closes above the upper boundary of the Support Area (>2636.14).
   • Always apply a minimum risk-reward ratio of 1:1.

Pullback Opportunity

1. Sell Setup:
   • Use the Resistance Area as the pullback zone. If a 1-hour candle closes within the pullback area, consider taking a Sell position.
   • Cut Loss: Place a stop-loss if the price closes above the pullback area’s upper boundary (>2669.22).
   • Maintain a minimum risk-reward ratio of 1:1.
2. Buy Setup:
   • Use the Support Area as the pullback zone. If a 1-hour candle closes within the pullback area, consider taking a Buy position.
   • Cut Loss: Place a stop-loss if the price closes below the pullback area’s lower boundary (<2626.65).
   • Maintain a minimum risk-reward ratio of 1:1.

Always implement proper money management for sustainable trading practices. Be cautious of Fake Breakout Candles to avoid unnecessary losses.

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

Happy Trading, everyone! 

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