[Video] Gold (XAUUSD) Technical Analysis & Reversal Potential

·    September 24, 2019

·      September 24, 2019

·    September 24, 2019


Is XAUUSD gearing up for a reversal?

Watch the video below to see my thoughts on where gold could be going from here.

Don’t forget to scroll down for more commentary and an annotated chart.

Gold buyers have been relentless.

In the last thirteen months, XAUUSD has rallied from 1160 in August 2018 to a year-to-date high of 1557 this month.

It’s been an impressive move, to say the least.

But nothing lasts forever, and at some point, gold is going to need a healthy pullback.

The tricky part is trying to time such a pullback.

It’s easy to say that one will happen eventually. Trying to time it, on the other hand, is much more difficult.

This is where technical patterns and levels can help.

In fact, a well-defined reversal pattern is one of the simplest and most reliable ways to spot an upcoming pullback.

And the XAUUSD may be forming such a pattern.

There are no guarantees, but the price action since August 7 is starting to look like a potential head and shoulders pattern.

The key words there are “starting” and “potential”.

Gold is still in rally mode, and until the market breaks the support level near 1490, buyers are in control.

But the potential for a reversal is real, in my opinion.

XAUUSD has yet to experience a significant pullback since the rally began thirteen months ago.

That alone would leave me hesitant to buy gold at these lofty prices.

As always, though, I have some key levels in mind that would either confirm or negate the potential for a reversal.

Let’s start with what it would take to negate the head and shoulders.

A move above the year-to-date high at 1557 would cancel out the potential for a move lower, at least in the short term.

I also think a close above the 1530/40 resistance area would suggest strength and could also hint at the next leg higher.

Now, what would confirm a bearish reversal for XAUUSD?

A daily close below neckline support that extends from the August 13 low would attract sellers.

Remember that I use New York close charts so that each 24-hour session opens and closes at 5 pm EST.

It would also confirm the head and shoulders pattern below.

A close below the neckline near 1490 would open the door to 1450 support followed by 1410.

The latter, by the way, would be the measured objective.

But as of right now, gold bulls are in control. I can’t stress that enough.

And if buyers do clear that 1530/40 resistance area on a daily closing basis, gold could be on its way to retest the year-to-date high at 1557.

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Gold (XAUUSD) possible head and shoulders pattern
XAUUSD key support and resistance levels

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31  Comments

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  1. Hi Justin, in my market watch under Metatrader I don’t have ‘XAUUSA’ but I have ‘Gold’ but the charts look somewhat similar when I compare mine and yours. Is there a difference? Thanks.

    1. Hi Jane, it’s XAUUSD (not “A”) just in case you were looking for the wrong symbol.

      XAUUSD is the spot commodity paired against the US dollar. Gold is the underlying asset, so it should track it without much variation.

  2. Hi sir, great analysis on Gold!

    What I am about to ask is off the topic though, I wanted to know if you have noticed that your pin bar course access link might be having some problems. Yes, it does take you to the page but the topics do not expand anymore.

    I have tried more than three internet browsers but the topics still won’t expand. Is this happening on purpose or it isn’t supposed to happen?

    Thanks.

    1. Bad analysis? Sorry, but I have no idea how you came to that conclusion.

      I said resistance was between 1530 and 1540. Gold has now topped out at 1535.

      I also said gold could reverse lower given the potential head and shoulders pattern that’s forming.

      So far, that has also happened. Again, right between 1530 and 1540.

      Even the video thumbnail says “gold reversal?”.

      Maybe you want to go back and have another read/watch?

      1. Panie Justinie analizy są uważam super i dziękuję bardzo za nie ( złoto), a osoba, która pisała ten komentarz jak dla mnie czyta bez zrozumienia KOMPLETNIE, A POTEM JESZCZE UWAGI I PRETENSJE… PRZYKRE. OSOBIŚCIE JA BARDZO DZIĘKUJĘ ZA ŚWIETNE ANALIZY.

  3. Hi there!…even with such great analysis that Mr Bennett repeatedly offers, I believe it is still not enough to warrant profitability for the novice and retail traders. Profitability will be a huge possibility only if the trader begins to understand his trading style, comprehend pure price action( price movement in relation to real time)and manage his risk proficiently( cutting losses early, good application of risk-reward ratio, and adding on to wiining positions) and monitor his performance to improve his trading( correct updating and application of the trading journal).

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