Technical Analysis of GOLD – February 17, 2025

From a technical perspective, I see that Gold has reached a price level worth considering for entry points.

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

Price Action Analysis (Trader Pressure Method)

In the current market trend, GOLD remains in a Bullish / Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks the Support area above, as well as price consolidation.

By analyzing candlestick history, we can look for Buy entry opportunities. However, to remain objective, I will present both Buy and Sell entry analysis.

Looking at the chart above, Buyer pressure (long green candles) is gradually pushing the price higher without strong opposition from Seller pressure (long red candles), forming Higher Lows. This indicates that Buyers still dominate the formation of key price levels. However, Sell opportunities may still be found in this GOLD market.

I have identified Resistance areas marked by the upper price levels (2901.48 – 2893.63) and Support areas by the lower price levels (2872.82 – 2864.97).

Entry Setup Options

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

Breakout Opportunity Setup:

• If the 1-hour candle closes above the upper Resistance boundary (2901.48), prepare to look for the best Buy entry position.
• If the 1-hour candle closes below the lower Support boundary (2864.97), prepare to look for the best Sell entry position.
• Cut Loss Rules:
  • For Buy entry, cut loss if the 1-hour candle closes below the lower Resistance boundary (<2893.63).
  • For Sell entry, cut loss if the 1-hour candle closes above the upper Support boundary (>2872.82).
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Positions:

• Use the Resistance area as the pullback zone.
• If the 1-hour candle closes within the pullback area, a Sell position can be considered.
• Cut loss if the 1-hour candle closes above the upper boundary of the pullback area (>2901.48).
• Maintain a minimum risk-reward ratio of 1:1 according to your trading strategy.

Pullback Setup for Buy Positions:

• Use the Support area as the pullback zone.
• If the 1-hour candle closes within the pullback area, a Buy position can be considered.
• Cut loss if the 1-hour candle closes below the lower boundary of the pullback area (<2864.97).
• Maintain a minimum risk-reward ratio of 1:1 according to your trading strategy.

Always implement proper money management for sustainable trading and stay cautious of fake breakout candles.

I hope this analysis serves as a useful reference for your market evaluation.

Happy Trading, everyone!

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