Gold XAU/USD Technical Analysis June 2020

Gold XAU/USD Technical Analysis June 2020: As we know that Gold is still in a good uptrend shape and its moving forward toward the area of 1800.The next question is now whether it cross all time high or not which is 1920. Last 20 months were very good for the gold price and if you look you will know that the market is up since almost last 2 years. Gold is one of the best metal to invest and trade not doubt, it attract all those trader’s and investors who likes to do trade or invest in volatility. Hence Cryptocurrency market has given a great amount of money return on investors investment compare to gold.

According to the monthly chart market is in uptrend for now and candlesticks are also giving a good understanding of market buyers and sellers. For more detail just check out the down below image where we have discussed about the buyers and sellers behavior by the help of last 20 candlesticks.

Xau/USD Technical Analysis

As you can see in the chart above everytime whenever sellers were trying to sell the market buyers are getting back to bull means the past history of 20 months does showing that our buyers are in control and market is going up. So now we have a record of 20 months which indicating that buyers are strong and market is in uptrend since the last 20 months.According to the box 1 area as shown above in chart, has less strength compare to the next 2,3 box. Box number 2,3 has a massive strength and a clear sign of bull run so now the question is whether its bull run? Yes according to the history and the strength we are in a uptrend.

As monthly chart showing that we are above the 200 Day Moving Average which is a good sign for a green zone or uptrend. That’s why in most of our long term technical analysis we always suggest to use Moving average as an secondary confirmation indicator on your charts or in your trading, the second bull indication would be inverted head and shoulder pattern, it has already form below, where we have our box number 1. Let’s try to get more information with the help of chart about it. Inverted Head & Shoulder pattern is one of the effective and valuable technical method of trading in a financial market. Its one of the well known technical chart pattern which indicates the reversal or an starting phase of bull run.

Inverted Head & Shoulder Pattern Formation

What is Next?

According to the chart analysis what we believe, this is the third cycle of uptrend for now which is a massive one, in most of occasion third to fourth cycle does has its final impact before the market reversal that’s why strength is little bit bigger in those 2,3 stages compare to stage 1 or box 1. Monthly chart belongs to long term trading analysis and you can take it as the Gold, XAU/USD yearly analysis for the year of 2020.

The next target can be 1800 and if we see that strength is still there after 1800 market can hit the area of 1920 as well. But we will suggest trader’s to be careful during the breakout, don’t go for a panic buy after the breakout. Just wait and watch because a sell may happen the breakout and market can come back down once again. breakouts levels are always cruical to understand and so many times traders got trapped in those fake breakouts.

There is no doubt in it that the future of Gold trading and investing is very bright and Gold is that commodity which is always a high demanding commodity in worldwide. Which would make the prices more costly for the future, We would like to post another article on XAU/USD when a breakout is there. Hope you loved the content, furthermore for any question you can put your question under the comment section.

Key points to remember in 2020:

  • Gold has a support of 200 Day Moving Average which is still acting as a good indication of market buy zone or uptrend. Price is above of 200 Day Moving Average which means there is chance that market will go up.
  • Market has a inverted head and shoulder pattern support which also indicating that price can go more higher and it can breach the area of all time high. Inverted Head and Shoulder pattern has been formed in Monthly Chart which could have a long run impact.
  • Candlesticks are also giving a positive indication for the future, because in last 20 candlesticks most of candlesticks are green and the impact of green candlesticks is massive than the red candlesticks. Which means sellers are still less compare to buyers.
  • Price 1800 and 1920 would be two important zone for now and a short sell can be seen from those two areas. Even if market has to go up once again a short sell may be seen.

Bottom Line:

Gold is a volatile commodity and its totally depend upon big market players that how they have to move the market prices. Though XAU/USD chart is seeming good at the moment but would recommend to wait for a breakout and have to watch how market buyers take their action after the breakout. So many time it does work like a trap also, Trading with breakouts required a good skill and undersanding plus some knowledge of support and resistance is required as well. We would like to discuss about it later once again with another technical analysis in which we would like to talk about an another review of market buyers and sellers.

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