Gold has lost its sheen over past many months and this is no surprise to us. We have been talking about Gold underperformance for more than a year and now even the traders are losing interest in yellow metal which has been the darling of commodity for more than a decade.
Gold has enjoyed decade long Bull run since 2002 onwards. A true rally in Gold is when prices rise against all the major currencies across the Globe and not just Indian Rupee. Even though Gold made new highs against INR in 2013 it failed to do so against USD, EURO, GBP, JPY. This clearly suggested that the rally in Gold prices in INR was unsustainable and only contributed by Rupee depreciation.
The below chart and analysis of Gold clearly reflects how Elliott wave analysis suggested an upcoming capitulation and severe selloff in this asset class:
MCX Gold 60 mins chart: (June contract) (as shown on 21st May morning report)
Happened as on 21st May post market analysis:
The severe selloff in Gold might be a surprise to many but not to our subscribers. We have mentioned the following yesterday morning when Gold was trading near 28200 “On upside 28350 is the important resistance. On downside any sharp move below 28000 will resume downtrend…….”
Happened: Gold made a sharp reversal and as soon as 28000 level was broken prices fell sharply and made a low of 27350.
We gave sell call on Gold as well to our intraday call subscribers who capitalized on the selloff.
Subscribe to the intraday / positional call of Commodity and get the research report absolutely free “The Commodity Waves” See yourself what is the trend for Gold, Silver, Crude, Copper and we also cover Natural Gas, Lead, Zinc periodically. Trade systematically. For subscription option visit http://www.wavesstrategy.com/index.php/store.html or write to us at helpdesk@wavesstrategy.com/ +91 22 28831358 / +91 9920422202
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