Technical Analysis of GOLD - January 21, 2025

From a technical perspective, I see that the price of Gold is currently at a level worth considering for potential entry points. 

Let’s take a look at the 1-hour Gold chart below before diving into the analysis:

Price Action Analysis (Trader's Pressure)

Based on the market trend, GOLD remains in a Bullish/Uptrend condition. However, we should also anticipate a potential trend reversal if the price breaks below the support area or enters a consolidation phase.

From the candle history, we can identify opportunities to enter Buy positions. However, to stay objective, I will provide an analysis for both Buy and Sell entries.

Looking at the chart, the dominance of Buyers (as indicated by the length of green candles) is gradually pushing the price higher, while Sellers (represented by the red candles) struggle to counter this movement. This results in the formation of higher lows, indicating that Buyers are still dominating certain price levels.

However, Sell opportunities can still be found in this GOLD commodity.

On the chart, I have identified:

• Resistance Area: Marked by lines above the price (2723.57 – 2717.93).
• Support Area: Marked by two lines below the price (2702.03 – 2696.27).

Suggested Entry Setups

1. Breakout Opportunity Setup

• If the 1-hour candle closes above the upper boundary of the Resistance Area (2723.57), prepare to look for the best Buy entry position.
• If the 1-hour candle closes below the lower boundary of the Support Area (2696.27), prepare to look for the best Sell entry position.
• For a Buy entry, set a Cut Loss if the 1-hour candle closes below the lower boundary of the Resistance Area (<2717.93).
• For a Sell entry, set a Stop Loss if the 1-hour candle closes above the upper boundary of the Support Area (>2702.03).
• Use a minimum risk-reward ratio of 1:1.

2. Pullback Opportunity Setup

• For a Sell position:
  Use the Resistance Area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Sell position. Set a Cut Loss if the candle closes above the upper boundary of the pullback area (>2723.57). Use a minimum risk-reward ratio of 1:1.

• For a Buy position:
  Use the Support Area as the pullback zone. If the 1-hour candle closes within this area, consider taking a Buy position. Set a Cut Loss if the candle closes below the lower boundary of the pullback area (<2696.27). Use a minimum risk-reward ratio of 1:1.

Always implement proper money management for sustainable and healthy trading. Stay cautious of fake breakout candles to avoid unnecessary losses.

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

Happy trading, everyone!

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