MCX Gold post making a high near 33600 has been moving towards lower levels. Post showing a strong the precious metal has been showing signs of weakness and we have been successful in capturing the reversal from the level of 33200. So how can Elliott wave help to trade this from positional perspective?
Below is the chart published in our daily report the “The Commodity Waves STU” wherein we have captured a reversal of 400 points with the help of channels, Moving Averages and other basic techniques.
MCX Gold April 60 min chart: (Anticipated as on 11th February)
MCX Gold April 60 min chart:(Happened as on 13th February)
(Below is an extract taken from our daily report)
As shown on hourly chart, wave (b) is ongoing on downside and prices can retrace upto 61.8% of wave a move. So we can expect a move towards 32800-32700 zone with important resistance placed near 33300 levels. Also its 50-periods EMA is providing resistance on upside indicating sideways to negative action can be expected in coming sessions.
In short, trend of MCX Gold is short term negative. Move towards 32800 or lower levels can be expected. It is advisable to maintain proper risk management strategy to capture this downmove in form of wave b.
Happened: The base metal moved precisely as expected and made a low near 32800 levels. This shows how we can capture major reversals with the help of basic technical indicators. It will be interesting to watch if it further moves towards lower levels.
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