Technical Analysis of GOLD – February 20, 2025

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

Let's first take a look at the 1-hour time frame Gold chart before analyzing further:

Using Price Action (Trader Pressure) analysis, we observe that GOLD remains in a Bullish / Uptrend condition. However, we must also anticipate a trend reversal if the price breaks through the Support area above and enters a consolidation phase.

By analyzing candle history, we can identify potential Buy opportunities. However, to remain objective, I will present an analysis for both Buy and Sell entry scenarios.

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 a Higher Low.

This indicates that Buyers still dominate the formation of certain price levels. However, Sell opportunities can still be found in GOLD.

In the chart, I have identified the Resistance area with lines above the price (2956.19 – 2949.40), while the Support area is marked by two lines below the price (2931.99 – 2925.09).

Entry Setup Options

You can adjust the following setups to suit your trading style:

Breakout Opportunity Setup:

• If the 1-hour candle closes above the Resistance Area (2956.19), prepare to look for the best Buy entry position.
• If the 1-hour candle closes below the Support Area (2925.09), prepare to look for the best Sell entry position.
• Cut Loss:
  • For a Buy entry, cut losses if the 1-hour candle closes below the lower boundary of the Resistance area (<2949.40).
  • For a Sell entry, cut losses if the 1-hour candle closes above the upper boundary of the Support area (>2931.99).
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup for Sell Position:

• Utilize the Resistance area for pullback entries.
• If the 1-hour candle closes within the pullback area, a Sell position can be taken.
• Cut Loss: If the 1-hour candle closes above the upper boundary of the pullback area (>2956.19).
• Use a minimum risk-reward ratio of 1:1 according to your trading strategy.

Pullback Setup for Buy Position:

• Utilize the Support area for pullback entries.
• If the 1-hour candle closes within the pullback area, a Buy position can be taken.
• Cut Loss: If the 1-hour candle closes below the lower boundary of the pullback area (<2925.09).
• Use a minimum risk-reward ratio of 1:1 according to your trading strategy.

Always apply proper money management in every trade to ensure sustainable trading practices. Be cautious of Fake Breakout Candles to avoid unnecessary risks.

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

Happy Trading, everyone! 🚀

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