Understanding and capturing the trend of Gold with application of Elliott wave, Channels and Moving averages!
Post witnessing the sharp trend towards 30500 in last week Gold has started to correct on downside. One should understand that corrections are also the part of the trend. One can trade the same when pattern as per Elliott wave is clear. This provides short term trading opportunity with favorable risk reward ratio. Below we have shown part of research on Gold which was published in today’s morning.
MCX Gold Oct 60 mins chart:
“Gold is moving in a range over past 2 days between the zone of 30060 and 29750 levels. Gold made a high near 30475 levels few days back and since then it has been giving a negative close.
During good trending move the best strategy to follow is to look at the bar technique. Unless we see a close above the prior day’s high it is better to use sell on rallies strategy. This is one simple but very effective method. As per this method for the overall daily trend to change we need to see close above 30040 which is previous day’s high. Unless that happens we can expect a move towards 29750 or lower.
As shown on hourly chart, prices are moving in complex corrective pattern and is now near the important channel support. It will be important to see if this channel can be protected or not. Move below 29750 will result into negative breakout and then trend towards 29600 can be expected.
In short, trend for Gold looks to be sideways and we can expect a move towards 29750 levels. Break below this will extend the fall further towards …. levels with …. as important resistance. Trade accordingly!”
Post publishing the above research, Gold has continued to trade in negative territory and important resistance levels are intact on upside. This is clearly suggesting inherent weakness atleast for next few days. To trade the same with important levels, you get access to “The Commodity Waves Short Term Update” with Gold, Silver, Crude and Copper with Elliott wave application.