Understanding and capturing the trend of Gold with the help of Elliott wave pattern, trend lines and moving averages!
Since last few months Gold, Silver as well as precious metals has been moving under pressure and showing sharp fall on downside. Gold started moving lower nearly from around 30000 levels and is now quoting around 28465 levels. One needs to be careful enough while trading in such a sharp downtrend. Part of the research is taken from “The Commodity Waves Short Term Update”.
MCX Gold Feb 60 mins chart: (Anticipated in the morning of 8th December 2017)
MCX Gold Feb 60 mins chart: (Happened till now)
(Part of research published in the morning of 11th December 2017)
“In the last update we mentioned that, “Use any rally towards 28750 levels as selling opportunity for a move towards 28600 or lower levels can be expected.” BANG ON!! Prices moved exactly the way we mentioned and closed on a negative note near 28522 levels. This shows the importance of channels and wave analysis. The overall structure of Gold is strongly negative and hence one should continue to look for selling opportunity.
As shown in 60 mins chart, post the completion of minor wave (b) prices are moving lower in the form of minute wave (iii) of minor wave (c). As long as 28620 followed by 28795 levels are not taken out trend for Gold remains negative. Also 50 periods Moving Average is providing crucial resistance to the down move. Hence Gold trend is negative with 28620 level acting as short term resistance.
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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