Understanding and capturing the trend of Gold with the help of Elliott wave pattern, trend lines and moving averages!
Since last few months Gold is under performing and it might be because of the ongoing Geopolitical tensions. The underlying has been very volatile since November and has been moving between 30000-29000 levels. Part of the research is taken from “The Commodity Waves Short Term Update”.
MCX Gold Dec 60 mins chart: (Anticipated in the morning of 4th December 2017)
MCX Gold Oct 60 mins chart: (Happened till now)
(Part of research published in the morning of 5th December 2017)
“In the last update we mentioned that, “Prices can retest the earlier low of 29000” BANG ON!! Prices moved exactly the way we mentioned and made a low of near 29001 levels.
As shown in 60 mins chart, post the completion of minor wave (b) prices started moving on downside. As long as 29270 level is not taken out trend for Gold remains sideways to negative. Also 50 periods Moving Average is providing crucial resistance to the down move. Hence Gold trend is negative with 29270 level acting as crucial resistance.
Also Comex Gold and USDINR have impact on Gold. There exists direct relationship between them. In last few sessions downfall was witnessed in Comex Gold and USDINR. This keeps Gold trend negative. Hence selling pressure can be seen in later sessions as long pivot high remains intact.
In short, Gold trend is negative. Use any rally towards… as selling opportunity for a move towards…”
Happened: As expected Gold moved lower as per Elliott wave pattern and achieved our mentioned target level in last 1st trading session. This indicates that it is very important to use such objective technical tools to capture the trends in commodity market.
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