MCX Gold post making a high near 31765 levels has been moving towards lower levels from past 2 trading session. It has failed to protect its previous day’s low and closed on a negative note. In previous session prices witnessed a flat opening and prices failed to sustain its grounds drifting towards lower levels of 31300 levels.
Using Elliot wave theory we were able to capture a move of 200 points in a single session. Below is the chart showing detail analysis on hourly chart of MCX Gold published in our “The Commodity Waves Short Term Update.”
MCX Gold Feb 60 min chart: (Anticipated as on 31st December, 2018 in the morning)
MCX Gold Feb 60 min chart: (Happened as on 31st December, 2018 during trading session)
Elliott Wave analysis:
As shown on daily chart, prices are moving in wave f of Diametric pattern which is forming Flat correction pattern. An important resistance is placed near 31750 levels so as long as it is intact on upside move towards lower levels can be expected.
As shown on hourly chart, prices have broken the upward slopping blue channel and closed on a negative note taking out the immediate support placed near 31600 levels. If prices gives a decisive break below 31500 on closing basis it will indicate completion of wave b on upside and start of wave c on downside which can take the prices towards 31300 in coming few sessions.
In short, trend for Gold is negative if 31500 is broken on closing basis. Also an important resistance is placed near 31750 levels. It is advisable to keep a close watch on levels mentioned.
Happened: In previous update we mentioned that, “trend for Gold is negative if 31500 is broken on closing basis.” BANG ON! Prices have moved in similar manner breaking its 31500 levels and making a low exactly near 31300 levels.
The above research clearly shows how well these techniques work. Subscribe to our Daily Commodity report, “The Commodity Waves Short Term Update” which provides short term views over precious metals like Gold, Silver and base metals like Copper and Crude. See here
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