Elliott wave is one of the forecasting tools to predict the market.
Elliott wave principle suggests
that past history of prices provide important information and accordingly it
can help us to trade or invest in market. As per this theory there are
impulsive as well as corrective waves. It is important to understand that which
pattern or correction is under formation. Ending Diagonal is one such pattern
which occurs during
the maturity of ongoing trend and post the completion of the same sharp trend
in opposite direction is possible.
Below we have shown part of research on MCX Gold taken from The Commodity Waves Short Term Update.
The wave counts have been removed purposely which is shown in original report.
MCX Gold April 60
In the last update we mentioned that, MCX
Gold can move in non trending fashion for next few days and post which upside
breakout should happen which will provide good trending move on upside.
In the last trading session prices
failed to break above the channel resistance and moved lower towards 28360
level. So on net basis there has been no trend and during such times it is
better to wait for the pattern breakout and understanding the overall pattern
as per Elliott wave theory is must.
As shown in 60 mins chart, in the
month of January 2016 sharp rally from 25000 to 30000 level was witnessed which
is impulsive in nature. At 30000 level prices completed intermediate wave a and
post that intermediate wave b is ongoing which is forming Flat correction
pattern. Internal structure of the same indicates that minor wave (c) is
ongoing which is forming Ending Diagonal Pattern. So over next 1 or 2 days
prices can continue to trade in range and is the important support on
downside. Faster move above .will provide first sign that upside trend is
To know crucial
levels and Elliott wave counts on MCX Gold, Silver, Copper and Crude, subscribe
Commodity Waves Short Term Update and for more information visit Pricing Page