Gold buy zone CAPITALCOM:GOLD
Buying Zone: 2610**
- **Rationale:** The 2610 zone represents a strong **support area**, where you anticipate buyer interest will outweigh selling pressure, leading to a potential price reversal or bounce.
- **Confirmation Signals:**
- Look for bullish candlestick patterns (e.g., hammer, bullish engulfing) or significant buying volume around 2610 on the **1-hour chart**.
- Ensure that price respects this level without breaking below it significantly, confirming it as a reliable entry point. CAPITALCOM:GOLD
**Target: 2634**
- **Rationale:** The 2634 level is identified as a **resistance zone** or a high-probability take-profit area. This could be a previously tested resistance or a psychological level where selling pressure is expected.
- **Technical Indicators:**
- Monitor for potential slowing of momentum (e.g., RSI divergence or overbought conditions) as the price approaches 2634.
- Watch for a failure to break 2634 on prior attempts, as this strengthens the case for a reversal or consolidation near the target.
**Risk Management**
- **Stop Loss:** Place your stop loss slightly below the **2610 level**, around 2605 or lower, depending on your risk tolerance, to protect against invalidation of the support zone.
- **Risk-Reward Ratio:** Ensure the trade offers a favorable risk-reward ratio. For instance, if targeting a $24 move (2610 to 2634), limit your risk to around $10 (stop at 2600).
