Trade setup on Precious Metal Using Ichimoku and Bollinger Band

gold ichimoku cloud trading Jul 01, 2020

Given the pandemic cases raising many investors have cast a shadow on hopes on the Base metals and driving inflows into safe heaven assets

Be in any asset class Elliott wave combined with various indicators such as Ichimoku cloud, Bollinger bands and the basic channelling technique exhibits the most useful trade setup.

Combination of various studies gives us conviction on the direction of the trend. Positive movement seen on MCX Gold was confirmed post using these indictors.

See below the study and application of Bands and cloud on hourly time frame which altogether suggests buying in the commodity.

MCX Gold Hourly chart with Ichimoku cloud

MCX Gold hourly chart with Bollinger Band

Elliott wave Analysis-

Gold has been glittering higher post breaking above weeks full of consolidation range. The metal prices hits all time Of 48982 (future levels)

Ichimoku Cloud: As shown on hourly chart, blue channel is working extremely well from where prices have bounce off from channel support. Also prices have risen above the cloud. Since base and conversion lines where far off from each other initially prices moved sideways till then. We saw classic break out once the line came nearby. Wave count also suggests wave (e) blue is in progress on upside.

Bollinger Bands- We have applied band on hourly chart which clearly indicates buying has emerged. As you can see band were squeezed during the consolidation until we see breakout. Currently we are seeing bands expansion. Prices have bounced off from the lower band post taking support. Currently prices are trading near the upper bands.

In short, MCX Gold remains bullish as long as we do not see any negative signals on indicators.

Following are the calls given today on intraday basis to our existing Intraday clients:

01/07/2020 (10.56am) GOLD FUT BUY ABOVE 48830 SL 48750 TGT1 48860 TGT2 48935 – TARGET 1 ACHIEVED AT (12.36pm) and TARGET 2 ACHIEVED AT (1.05pm)

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