Gold has been the asset which has given exorbitant returns over shortest possible time frame. That is the power of 3rd wave you can witness.
MCX Gold ended the yesterday’s session with a bullish marubozu candle and closed the session at 39740 with a gain of nearly 640 points. It is not very often that we see such steep rise in precious metal and it only indicates a strong trend is under way.
The below article describes the wave 3rd extension pattern of the Elliott wave principle. Prices are currently in wave (iii) of iii of 3 and it is not going to end anytime soon.
The below chart is from daily commodity research report – The Commodity Waves short term update
MCX Gold daily chart:
Usually Commodity witnesses largest wave 5. This is the reason why MCX gold is seen rising higher and higher since past many sessions. Currently intermediate degree wave (5) is ongoing within which sub wave 3 seems to be extended as shown on the daily chart. Internal counts suggest that prices are moving higher in the form of wave iii of wave 3.
Trend for MCX Gold remains positive with the immediate support placed at ……. If this level is held intact on a closing basis, we can expect the prices to move higher and test newer highs.
3rd or 5th Wave extension looks like in a bull market in the above research. An extension is an unusually long impulse wave with exaggerated sub waves, according to Frost and Prechter. Many impulses contain only one extension in their sub waves. That is, only one of the wave’s one, three, or five, will be extended. The sub waves within an extension have nearly the same duration and amplitude as the ones in the rest of the wave.
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