Technical Analysis of GOLD on December 13, 2024

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

Let's examine the Gold chart on the 1-hour timeframe below before proceeding with the analysis:

Using Price Action (Trader Pressure) analysis, it appears that Gold is still in a Bullish/Uptrend. However, we must also anticipate potential trend reversals if the price breaks through the support area or consolidates.

Based on candle history, there are opportunities to seek Buy entries, but to remain objective, I will present analysis for both buy and sell entries.

Looking at the chart, Buyer pressure (long green candles) is gradually driving prices higher, without significant opposition from Seller pressure (long red candles), forming a Higher Low.

This indicates that buyers are still dominating the price formation at specific levels. However, there are still Sell opportunities within Gold.

On the chart:

• The Resistance area is marked above the price (2713.16 – 2703.16).
• The Support area is marked below the price (2676.80 – 2667.48).

Entry Setup Options

You can adjust the following setups to your trading style:

1. Breakout Opportunity Setup

• If the 1-hour candle closes above the Upper Boundary of the Resistance Area (2713.16), prepare to look for the best Buy entry.
• If the 1-hour candle closes below the Lower Boundary of the Support Area (2667.48), prepare to look for the best Sell entry.
• Set a Cut Loss:
  • For Buy entries, if the 1-hour candle closes below the lower boundary of the resistance area (<2703.16).
  • For Sell entries, if the 1-hour candle closes above the upper boundary of the support area (>2676.80).
• Use a minimum risk-reward ratio of 1:1.

2. Pullback Setup for Sell Positions

• Use the resistance area as the pullback zone. If the 1-hour candle closes within the pullback area, take a Sell position.
• Set a Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2713.16).
• Maintain a minimum risk-reward ratio of 1:1, based on your trading method.

3. Pullback Setup for Buy Positions

• Use the support area as the pullback zone. If the 1-hour candle closes within the pullback area, take a Buy position.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2667.48).
• Maintain a minimum risk-reward ratio of 1:1, based on your trading method.

Always apply good money management practices for sustainable and healthy trading, and stay alert to Fake Breakout Candles.

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

Happy Trading, everyone!

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