Gold has been moving in a broad range of 38200-37800 since past few sessions. During such non-trending movement one can use Bollinger Bands which are volatility based bands placed above and below a moving average. The middle band is Simple moving average that is usually set at 20 periods.
Also to understand if a trending move is due one can use Average directional Index (ADX).
Below is the chart of MCX Gold with detailed analysis on indicators like ADX and Bollinger Bands.
MCX Gold October daily chart: (Anticipated as on 30st October, 2019)
We have shown ADX indicator on daily chart that displays strength of the trend and also confirms the direction with the help of +DI (Directional Indicator) and -DI. If +DI crosses above the –DI it indicates that the direction of the trend is positive and vice versa. A falling ADX line reading below 25 levels indicates a non-trending market.
On the daily time frame, prices are moving sideways. During sideways market the best technique to use is Bollinger Bands. The upper end of the band will provide the resistance and the lower end will provide the support. We are showing Bollinger Bands on the chart and prices have been moving precisely within the area of the band. Currently prices are near the lower area of the Band a decisive break below 37760 can take prices towards…. whereas on the upside a break above 38480 would push prices towards ……….
As per wave theory prices are moving in the form of wave iii of 3 (blue) within which wave (iv) is in progress.
In short trend for MCX gold is range-bound. It is better to wait for the break of pivot levels to initiate fresh positions.
To know what will be the next move of Gold subscribe to our daily commodity report. It also covers short term view on Crude, Silver and Copper, Register here
Multibagger stocks – we recommended latest Multibagger stock and the same is up by more than 5% in just a day already. We are seeing necessary momentum in market and it is best to accumulate these stocks steadily. Know more here
Today is the last day for subscription of Multibagger, Momentum and Intraday calls in Equity, Commodity and Currency segment upto 50% lower price. Diwali offer here