Technical Analysis of GOLD for December 19, 2024

From a technical perspective, the Gold commodity is currently at a price level worth considering for potential entry points. 

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

Price Action Analysis (Trader Pressure)

Based on the market trend, GOLD appears to remain in a Bullish/Uptrend condition. However, it's crucial to anticipate a trend reversal if the price breaks through the Support area or enters a consolidation phase.

By analyzing the candlestick history, we can identify potential Buy opportunities. However, to remain objective, I will present both Buy and Sell setups.

Observations from the Chart:

In the chart above, Buyer pressure (indicated by the long green candles) is gradually pushing the price higher, overpowering Seller pressure (shorter red candles) and forming Higher Lows. This suggests that Buyers are still dominating the market, setting specific price levels. However, there are still potential Sell opportunities within this GOLD commodity.

The chart highlights the following key areas:

• Resistance Area: 2623.15 – 2610.53
• Support Area: 2676.07 – 2662.45

Entry Setups:

Breakout Opportunity Setup

• If the price closes a 1-Hour candle above the Resistance Area's Upper Limit (2623.15), prepare to look for the best Buy entry positions.
• Conversely, if the price closes a 1-Hour candle below the Support Area's Lower Limit (2662.45), prepare to look for the best Sell entry positions.

Stop Loss (Cut Loss):

• For Buy entries, place a Stop Loss if the price closes below the Resistance Area's Lower Limit (<2610.53).
• For Sell entries, place a Stop Loss if the price closes above the Support Area's Upper Limit (>2676.07).
  Maintain a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Positions

• Use the Resistance Area as the pullback zone. If the price closes a 1-Hour candle within this area, consider taking a Sell position.
• Place a Stop Loss if the price closes above the Upper Limit of the Pullback Area (>2623.15).
• Ensure your risk-reward ratio is at least 1:1, aligning with your trading style.

Pullback Setup for Buy Positions

• Use the Support Area as the pullback zone. If the price closes a 1-Hour candle within this area, consider taking a Buy position.
• Place a Stop Loss if the price closes below the Lower Limit of the Pullback Area (<2662.45).
• Ensure your risk-reward ratio is at least 1:1, aligning with your trading style.

Always apply proper money management to ensure sustainable trading practices. Be vigilant against Fake Breakout candles, which can disrupt your setups.

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

Happy Trading, everyone!

Share: