Gold Elliott wave with Simple Trend Following & KST Indicator

Gold's Glittering Again: Riding the Bullish Wave

The Resurgence of Gold

Gold is glittering again, and we can clearly see that from the charts. From an Elliott Wave perspective, Gold has consolidated in the form of wave 4 and has shown a gap up opening. We can expect gold to continue to rise further from here on.

Gold chart with AK custom Indicator-

Gold Hourly chart with KST Indicator

Trend Following Methods

It's best to use a simple trend following method. Here are two ways to do it:

1. Weekly Close Method: Unless there's a close below the prior week's low, consider the trend intact. Since we're seeing an euphoric rise, it's better to use a weekly close. Use dips as buying opportunities.
2. Moving Average and KST Indicator:
• Use a 43-period moving average on an hourly chart.
• Combine it with the KST (Know Sure Thing) indicator.
• Look for the KST to cross above both its signal line (red line) and the zero line.

When these conditions are met, we get a strong confirmation that the upside move has started.

Current Market Signals

Right now, we're seeing positive signals:

• The green KST line is about to cross above zero and is already above the signal red line.
• Prices have completed wave 4 and are starting wave 5 on the higher side.
• The moving average is confirming an upside turn as prices have moved above it. It is a 43 Moving average which is selected using Time cycle concept.

These three simple indicators can be a powerful way of trading the market.

Outlook for Gold

The undertone for gold is still bullish. Don't try to catch a top here – it could be an euphoric or manic move. We can expect gold to cross above the 1,28,000 mark on MCX.

Currency Impact

The rupee has continued to depreciate, putting upside pressure on gold prices. USD/INR has been inching higher and is finding some resistance around 89 levels. If that level is crossed, we might see further depreciation of the rupee, which could lead to more upside for gold.

Remember, in trading, no indicator is a "sure thing." Always use proper risk management and consider multiple factors before making trading decisions.

In a nutshell, KST, Elliott wave and Moving average is powerful way to trade Gold, Silver, Nifty, Stocks. Proper combination of above methods suggests Gold trend is positive with 120000 as support and upside move to 128000 – 132000 or higher is possible.

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