MCX Gold has been moving down and making lower lows and lower highs since past many sessions. With the help of Elliott wave patterns combined with simple candlestick patterns we were able to predict the down move.
The Evening Star is a bearish, top trend reversal pattern that warns of a potential reversal of an uptrend. The pattern consisting of three candles: a large white candlestick, a small-bodied candle, and a red candle.
In bull market zigzag correction takes prices on the downside. A zigzag pattern labeled as A-B-C. Wave A and wave C is impulse. Wave B itself will be corrective and it will not move beyond the 61.8%retracement level of wave A.
Below is the chart with detailed analysis published in our report – “The Commodity Waves Short term update”
MCX Gold October 60 min chart: (Anticipated as on 11th September, 2019)
MCX Gold October 60 min chart: (Happened as on 12th September, 2019)
Anticipated as on 11th September, 2019: On the daily chart we MCX Gold witnessed a steep fall post testing the high of 39885, where it formed an evening star candle pattern (reversal pattern). Currently we seem to be moving in the form of wave (iv) on the downside and might take prices lower towards the 37800 level.
On the hourly chart we have shown the internal counts of the ongoing wave (iv) wherein we are currently moving in the form of wave c of the Zigzag pattern. The immediate resistance seems to be placed at 38500 level, we can expect s slight pullback towards this level.
In short the trend for MCX Gold seems to be placed at a crucial juncture with the immediate resistance placed at 38500. A break below 38200 will take the prices lower towards the 38000-37800 level.
Happened as on 12th September, 2019- Prices moved in line with our expectations, with a minor gap down from 38235 levels and moved down towards 37790 levels.
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