Application of Elliott wave, Channels and Moving average to know the trend of Gold.
Along with basic technical tools, application of Elliott wave can provide high probable trade setups. Most of the times market moves in corrective trends and there are rare occasions where impulsive pattern we get to see. Zigzag, Flat, Triangle, Double and Triple correction are the different corrective patterns. Below we have shown 60 mins chart of MCX Gold which has formed Zigzag correction pattern. Zigzag correction is 5-3-5 pattern which provides a good trading opportunity. Below part of research is taken from “The Commodity Waves Short Term Update”.
MCX Gold June 60 min chart:
(Part of research taken from 16th May 2017)
“In the last trading session Gold moved higher towards 28130 level and post the same it reversed on downside towards 27990 levels.
As shown in 60 mins chart, prices are failing to move above the pivot resistance level and reversing on downside. This is indicating that bears have the upper hand and hence as long as we do not see clear higher high higher low formation with strong momentum, trend will remain on downside. Move below 27900 will indicate that trend has resumed on downside.
From intermarket perspective, Comex Gold is retracing the prior down move and it has arrived near the pivot resistance of 1240. Price action from hereon will be crucial to see. Any reversal below 1225 will indicate that trend has resumed on downside.
In short, Gold is in range. Move above…………or below…….
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