Gold is one of the best commodity or metal to trade in financial market, due to its volatility and speculation a big amount of trader’s does like to do trade in Gold. This is common that whenever a market has a good volatility it create so many trading opportunities for trading as well as for investing. That’s why Gold is one of the precious metal and a big amount of trading volume can be seen everyday in Gold trading within differ trading exchanges.
Actually its depend upon a trader that how he does take the commodity based trading, because high risk and high reward system does work here, and that can be related to our trading leverage. A small amount of lot can provide a big amount of money as well as a big amount of loss also. But on the other hand for investor’s gold investment can be profitable as well as it can create the possibility of losses also.
For investors the best thing would be to buy the Gold in deep as much as deeply they can buy each time. Because if you are buying at top of the peak that can bring problem to you later, Keep in mind that support and resistance, market trend anlaysis these two should be always clear to you before investing in the gold.
Year 2006 to 2011 was really awesome for the gold and we had seen a very good uptrend bull run in the gold that time. But after 2012 to 2015 a decline had been seen in the price of gold and still the price is in range at the moment. Furthermore let’s have a look on chart and see what kind of possibility we may see this year in the price of gold chart.
- Gold as an investment in 2020 Chart Study:
If we see market as in a long term analysis its still up because the big whale is driving the market since 2006 to August 2011 toward to upside wave, which is known as an uptrend in financial market. But since September 2011 the price of gold has been decreasing and price has touched the 0.618 fibonacci area which was $1048 in value of price.
According to current market condition right now market has made an Inverted head and shoulder pattern on chart and $1125 is seeming a very strong support for the gold price. On the other hand upside this will be really interesting to watch out that can we see a breakout above $1400 or not.
As shown above in the chart every time we are going up toward the range $1366 to $1400 we are coming down from there, which means these prices are really very crucial for our buyer. If we see that again we are getting a downfall from up those levels then may be more downfall can come in the price of gold. We have to keep in mind that $1921 to $1047 is the area of big sellers and they can smash the price back once again from up there which is called as our resistance also on top.
All the areas those are in circle indicating the value of those price levels, but if once price goes above of all those areas the possibility of bullish movement can come in the price of gold. For that we have another chart shown as below in which we will discuss that what kind of possibility is there if we see that market price is breaching all those above areas. Lets take a look on chart shown below:
According to our trading analysis we believe that the area of $1400 would be important and if we would get a good support from there in future a massive strength can come in the price. So as an investor if you are looking to buy gold this year the at least wait for the this possibility as shown above in the chart or picture. Because still the strong selling zones are coming upside that’s why we would prefer investor’s to concentrate on strong buying zones and right now its not easy to say that where market flow is going on. We are in a counter trading phase right now, which can become later a heavy sell but if once we are above of $1400 a strong bull trend can resume once again.
Furthermore there are so many other commodities where we can invest in the year of 2019, those we will discuss in future articles, and keep focusing on crypto currencies also because next 3 ot 5 year’s can be all about the cryptocurrencies. We believe that in a range year of 2019 to 2025 cryptocurrencies will also do better so it will be good to concentrate on cryptocurrencies also.
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