Technical Analysis of GOLD – February 5, 2025

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

Let's take a look at the 1-hour timeframe GOLD chart below before analyzing further:

Price Action (Trader Pressure) Analysis

In the market trend, GOLD remains in a bullish/uptrend condition. However, we must also anticipate a trend reversal if the price breaks through the support area above, as well as potential price consolidation.

Based on the candlestick history, we can find buy entry opportunities, but to stay objective, I will provide an 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, while seller pressure (long red candles) is unable to counter effectively, forming higher lows.

This indicates that buyers are still dominating the price movement at certain levels. However, sell opportunities may still be found in GOLD.

Key Levels for Support & Resistance:

• Resistance Area: 2862.48 – 2853.50
• Support Area: 2827.55 – 2817.47

Entry Setup Options

Breakout Opportunity Setup:

• If the 1-hour candle closes above the resistance area (2862.48), prepare to look for the best buy entry.
• If the 1-hour candle closes below the support area (2817.47), prepare to look for the best sell entry.
• Stop Loss (SL) & Risk Management:
  • For buy entries, cut loss if the 1-hour candle closes below 2853.50.
  • For sell entries, cut loss if the 1-hour candle closes above 2827.55.
  • Use a minimum risk-reward ratio of 1:1.

Pullback Setup – Sell Position:

• Utilize the resistance area for pullback entries.
• If the 1-hour candle closes within the pullback area, consider a sell entry.
• Cut loss if the 1-hour candle closes above 2862.48.
• Use a minimum risk-reward ratio of 1:1.

Pullback Setup – Buy Position:

• Utilize the support area for pullback entries.
• If the 1-hour candle closes within the pullback area, consider a buy entry.
• Cut loss if the 1-hour candle closes below 2817.47.
• Use a minimum risk-reward ratio of 1:1.

Always implement good money management in every trade to maintain long-term trading consistency. Also, be cautious of fake breakout candles.

I hope this analysis serves as a valuable reference for your market decisions.

Happy Trading, everyone!

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