Technical Analysis of GOLD on December 16, 2024

From a technical perspective, Gold appears to have reached a price level worth considering for potential entry points. 

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

Using Price Action Analysis (Trader’s Pressure), the market trend suggests that Gold remains in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the Support area above or enters a consolidation phase.

In the candle history, there are opportunities to look for Buy entries. To remain objective, I will present an analysis for both potential Buy and Sell entries.

Based on the chart above, Buyer pressure (represented by the length of green candles) has been steadily pushing the price upward, with minimal resistance from Seller pressure (length of red candles). This has resulted in the formation of Higher Lows, indicating that Buyers are still dominating the creation of certain price levels.

Nevertheless, there are still opportunities to look for Sell setups within Gold.

On the chart, I’ve identified the Resistance area with lines above the current price (2667.70 – 2659.29) and the Support area with lines below the current price (2637.70 – 2629.07).

Entry Setup Options

Below are my entry setups, which you can adjust to suit your trading style:

1. Breakout Opportunity Setup

• If the 1-Hour candle closes above the upper boundary of the Resistance area (2667.70), prepare to find the best Buy entry position.
• If the 1-Hour candle closes below the lower boundary of the Support area (2629.07), prepare to find the best Sell entry position.
• Cut Loss:
  • For Buy entries, close the trade if the 1-Hour candle closes below the lower boundary of the Resistance area (<2659.29).
  • For Sell entries, close the trade if the 1-Hour candle closes above the upper boundary of the Support area (>2637.70).
• Maintain a minimum risk-to-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 this Pullback area, consider taking a Sell position.
• Cut Loss: If the 1-Hour candle closes above the upper boundary of the Pullback area (>2667.70).
• Maintain a minimum risk-to-reward ratio of 1:1, adjusted to your trading style.

3. Pullback Setup for Buy Positions

• Use the Support area as the Pullback zone. If the 1-Hour candle closes within this Pullback area, consider taking a Buy position.
• Cut Loss: If the 1-Hour candle closes below the lower boundary of the Pullback area (<2629.07).
• Maintain a minimum risk-to-reward ratio of 1:1, adjusted to your trading style.

Always apply proper money management in every trade to maintain healthy and sustainable trading. Stay alert for potential Fake Breakout Candles.

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

Happy Trading, everyone!

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