Understanding and trading the trend of Base Metals like MCX Zinc with the application of Elliott wave and Channels!
Post the Financial Crisis of 2007-2008 Base metals has moved higher but in form of corrective manner. The corrective rally started from 2009 has taken out the high of 2007 recently. This will keep overall trend on upside. Moreover the momentum on upside is strong in nature which suggests there is more potential on upside from medium to long term perspective. Look at the below chart of Zinc which is taken from “The Commodity Waves Short Term Update” published in today’s morning. This chart shows that post the completion of Bow – Tie Diametric pattern prices are showing strong momentum in form of second correction pattern.
MCX Zinc Weekly chart:
MCX Zinc 60 mins October chart:
(Part of research taken from Commodity Report)
“Base Metals like Zinc, Lead, Aluminum has continued to maintain its medium term uptrend and in this Zinc is trading at the life time highs and outperforming one. One should look for buying opportunity in this base metal.
The weekly chart shows that in the start of 2016 prices completed intermediate wave x and since then second correction on upside is ongoing. This is forming Zigzag correction pattern and rally ongoing from last few weeks is in form of minor wave c which is subdividing further. There is no such sign of loss of momentum and medium term trend will remain firmly on upside. 20 weeks EMA is proxy for the same which is providing support to the up move.
As shown in 60 mins chart, as of minute wave (iv) of minor wave iii is ongoing and post the same upside leg should start in form of minute wave (v). Confirmation of the same will be obtain on move above ……”
To understand the trend of Gold, Silver, Crude, Copper and base metals like Zinc, Lead, Natural Gas on alternate weekly basis , get access to “The Commodity Waves Short Term Update”.
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