Technical Analysis of GOLD – February 19, 2025

From a technical perspective, GOLD has reached a price level that is still worth considering for potential entry points. 

Before proceeding with the analysis, let's review the 1-hour time frame chart for GOLD.

Price Action Analysis (Trader Pressure)

In the current market trend, GOLD remains in a Bullish/Uptrend condition. However, we must also anticipate potential trend reversals if the price breaks through the identified support areas or enters a consolidation phase.

From historical candlestick patterns, we can look for Buy entry opportunities. To maintain objectivity, I will present analysis for both Buy and Sell entries.

Observing the chart, we can see that Buyer pressure (long green candles) is gradually pushing the price higher, with Seller pressure (long red candles) unable to counteract effectively, resulting in the formation of Higher Lows. This indicates that buyers continue to dominate certain price levels. However, potential Sell opportunities can still be found in GOLD.

Key Levels Identified:

• Resistance Area: 2944.20 – 2938.48

• Support Area: 2921.98 – 2915.44

Entry Setup Options

Breakout Opportunity Setup:

• Buy Entry: If a 1-hour candle closes above the Resistance Area (2944.20), prepare to look for the best Buy entry.

• Sell Entry: If a 1-hour candle closes below the Support Area (2915.44), prepare to look for the best Sell entry.

• Cut Loss:

  • For Buy entry, set a stop-loss if the 1-hour candle closes below 2938.48.

  • For Sell entry, set a stop-loss if the 1-hour candle closes above 2921.98.

• Risk-to-Reward Ratio: Minimum 1:1.

Pullback Setup:

• Sell Position: If the 1-hour candle closes within the Resistance area, consider a Sell entry. Set a Cut Loss if the 1-hour candle closes above 2944.20. Maintain a minimum 1:1 risk ratio.

• Buy Position: If the 1-hour candle closes within the Support area, consider a Buy entry. Set a Cut Loss if the 1-hour candle closes below 2915.44. Maintain a minimum 1:1 risk ratio.

Final Notes

• Always use proper money management to ensure sustainable trading.

• Be cautious of fake breakout candles that may mislead market entry decisions.

• This analysis is intended as a reference for your market evaluation.

Happy Trading!

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