Technical Analysis of GOLD on December 3, 2024

From a technical perspective, I see that Gold has reached a price level that remains attractive for entry consideration.

Let’s review the Gold 1-hour time frame chart below before diving into the analysis:

Price Action Analysis (Trader Pressure)

In the current market trend, GOLD appears to still be in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the Support area above or consolidates.

By observing the candle history, we can identify buy entry opportunities. To maintain objectivity, I will provide an analysis for both buy and sell entries.

From the chart above, Buyer pressure (long green candles) is gradually pushing the price upward, overcoming the Seller pressure (short red candles), and forming Higher Lows. This indicates that buyers are still dominating the formation of certain price levels. Nevertheless, selling opportunities can also be identified in this Gold market.

Key areas identified on the chart:

• Resistance: Marked by the lines above the price (2664.22 – 2653.46).
• Support: Marked by the lines below the price (2629.15 – 2620.50).

Entry Setup Options

Breakout Opportunity Setup

1. Buy Entry:

   • If the 1-hour candle closes above the upper Resistance boundary (2664.22), prepare to look for the best buy entry position.

2. Sell Entry:

   • If the 1-hour candle closes below the lower Support boundary (2620.50), prepare to look for the best sell entry position.

Stop Loss Guidance:

• For buy entries: Cut loss if the 1-hour candle closes below the lower Resistance boundary (<2653.46).
• For sell entries: Cut loss if the 1-hour candle closes above the upper Support boundary (>2629.15).
• Maintain a minimum risk-to-reward ratio of 1:1.

Pullback Setup

1. Sell Position:

   • Use the Resistance area as the pullback zone.
   • If the 1-hour candle closes within this pullback area, consider a sell position.
   • Cut loss if the 1-hour candle closes above the upper boundary of the pullback area (>2664.22).
   • Apply a minimum risk-to-reward ratio of 1:1.

2. Buy Position:

   • Use the Support area as the pullback zone.
   • If the 1-hour candle closes within this pullback area, consider a buy position.
   • Cut loss if the 1-hour candle closes below the lower boundary of the pullback area (<2620.50).
   • Apply a minimum risk-to-reward ratio of 1:1.

Always implement sound money management strategies in every trade to ensure healthy trading practices. Be cautious of fake breakout candles that may lead to false signals.

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

Happy Trading, everyone!

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