Technical Analysis of GOLD on December 18, 2024

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

Let’s take a look at the 1-hour time frame Gold chart below before proceeding with the analysis:

Using Price Action analysis (Trader’s Pressure), the trend currently shows that GOLD remains in a Bullish/Uptrend condition. However, we must also anticipate potential trend reversals if the price breaks through the Support area or consolidates.

Based on the candle history, we can look for Buy opportunities, but to maintain objectivity, I will provide an analysis for both Buy and Sell entry setups.

From the chart above, we can see that Buyer pressure (indicated by the length of the Green candles) is gradually pushing prices higher, surpassing Seller pressure (indicated by the length of the Red candles), and forming Higher Lows. This suggests that Buyers are still dominating the formation of certain price levels. However, there are still Sell opportunities to be found in GOLD.

In the chart, I have marked the Resistance area with lines above the price (2667.44 – 2659.40). For the Support area, it is marked by two lines below the price (2636.95 – 2628.92).

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

Breakout Opportunity Setup:

• If the price closes a 1-hour candle above the Resistance area’s upper limit (2667.44), look for the best Buy entry position.
• If the price closes a 1-hour candle below the Support area’s lower limit (2628.92), look for the best Sell entry position.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the resistance area (<2659.40) for Buy entries or above the upper boundary of the support area (>2636.95) for Stop Loss on Sell entries. Aim for 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 the pullback area, consider taking a Sell position.
• Set a Cut Loss if the 1-hour candle closes above the upper boundary of the pullback area (>2667.44). Maintain a minimum risk-reward ratio of 1:1 in line with your trading strategy.

Pullback Setup for Buy Positions:

• Use the Support area as the pullback zone. If the price closes a 1-hour candle within the pullback area, consider taking a Buy position.
• Set a Cut Loss if the 1-hour candle closes below the lower boundary of the pullback area (<2628.92). Maintain a minimum risk-reward ratio of 1:1 in line with your trading strategy.

Always implement proper money management to ensure healthy trading practices, and remain cautious of Fake Breakout Candles.

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

Happy Trading, everyone!

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