Technical Analysis of GOLD – February 21, 2025

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

Let's take a look at the 1-hour timeframe Gold chart before we proceed with the analysis:

Using Price Action (Trader Pressure) analysis, we can see that Gold is still in a Bullish/Uptrend condition. However, we must also anticipate a potential trend reversal if the price breaks through the Support area above or enters a consolidation phase.

By examining the candlestick history, we can identify potential Buy opportunities. However, to remain objective, I will provide an analysis for both Buy and Sell entries.

Looking at the chart above, the Buyer's pressure (long green candles) is gradually pushing the price higher without significant resistance from the Seller's pressure (long red candles), forming a Higher Low.

This indicates that Buyers are still dominating price level formations. However, Sell opportunities can still be found within the Gold market.

On the chart, I have marked the Resistance area with lines above the price (2956.19 – 2949.40). For the Support area, we can refer to the two lines below the price (2931.99 – 2925.09).

My Recommended Entry Setups – Adjust Based on Your Trading Style

Breakout Opportunity Setup:

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

Pullback Setup for Sell Position:

• The Pullback area is based on the resistance level. If the 1-hour candle closes within the pullback area, you can take a Sell position.
• 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:

• The Pullback area is based on the support level. If the 1-hour candle closes within the pullback area, you can take a Buy position.
• 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 maintain sustainable and healthy trading. Also, be cautious of fake breakout candles.

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

Happy Trading, everyone!

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