Technical Analysis of GOLD on January 20, 2025

From a technical perspective, the current price level of Gold presents opportunities worth considering for potential entry points. 

Let’s take a closer look at the 1-hour time frame chart for Gold before diving into the analysis.

We’ll analyze the market using Price Action (Trader Pressure). Currently, Gold appears to be in a Bullish/Uptrend condition. However, it’s important to anticipate a potential trend reversal if the price breaks through the support area above or enters a consolidation phase.

By reviewing the candle history, we can identify buy opportunities. To remain objective, I’ll present setups for both buy and sell entries.

On the chart, the buyer pressure (represented by the length of green candles) is gradually pushing prices higher, overcoming seller pressure (represented by red candles) and forming higher lows. This indicates that buyers continue to dominate price levels. However, sell opportunities can still be found within the Gold market.

Key Levels:

• Resistance Area: 2704.59 – 2698.67
• Support Area: 2683.72 – 2677.11

Suggested Entry Setups:

1. Breakout Opportunity Setup

• Buy Entry:
  If the 1-hour candle closes above the upper resistance level (2704.59), prepare to find the best buy position.

• Sell Entry:
  If the 1-hour candle closes below the lower support level (2677.11), prepare to find the best sell position.

• Stop Loss/Cut Loss:

  • For a buy entry, place a stop loss if the 1-hour candle closes below 2698.67 (lower boundary of the resistance area).
  • For a sell entry, place a stop loss if the 1-hour candle closes above 2683.72 (upper boundary of the support area).
  • Use a risk-reward ratio of at least 1:1.

2. Pullback Opportunity Setup

• Sell Position (Pullback to Resistance Area):
  If the 1-hour candle closes within the resistance pullback area, you can open a sell position. Place a stop loss if the 1-hour candle closes above 2704.59 (upper boundary of the pullback area). Maintain a risk-reward ratio of 1:1, based on your trading strategy.

• Buy Position (Pullback to Support Area):
  If the 1-hour candle closes within the support pullback area, you can open a buy position. Place a stop loss if the 1-hour candle closes below 2677.11 (lower boundary of the pullback area). Maintain a risk-reward ratio of 1:1, based on your trading strategy.

Always practice proper money management to ensure sustainable and healthy trading. Be cautious of fake breakout candles, as they can lead to false signals.

I hope this analysis provides valuable insights for your market analysis.

Happy Trading, everyone!

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