Elliott wave has been one of the important advanced technical analysis tool we use to determine the direction of an asset.
This theory can applied on freely traded assets provided it is highly tradable and liquid. We all know Gold is one of the most traded asset and Elliott wave patterns work very well even though in complex formation.
Now below is the example of Triple correction pattern. This pattern tends to be channelized with very rhythmic movement. Also each correction is labeled as a-b-c which is followed by wave x and then the other standard correction. There can be maximum of three correction and two “x” waves. Now look at below chart of Gold and try to understand where we stand from maturity of downtrend!
This chart of Gold is shown in daily commodity research report “The Commodity waves”
Gold 60 mins April Contract chart:
Wave Analysis (published today morning before commodity markets opened)
Comex Gold has continued to move lower from $1300 levels and not a single bar has managed to close above the prior bar’s high.We have observed that this basic technique works very well in Gold during a trending move. So unless we see a close above prior bar high which is currently at …. the trend for Comex Gold will continue to be negative.
Over here in MCX Gold, the selloff has continued within the channel. We have been constantly mentioning about Gold underperformance as an investment class in our monthly updates. Nevertheless, short to medium term trend can reverse back on upside. However, over short term there is no positive confirmation and move above 27200 will be important for positivity which will break the short term downward moving channel.
Gold Triple correction Elliott wave pattern -As shown on hourly chart, prices are moving in complex corrective fashion and each of the leg have been equal. This is a typical characteristic of triple corrections and currently minor wave (a) is ongoing of 3rd correction. As mentioned earlier move above 26990 will indicate wave (b) on upside towards the channel at 27100 has started. Unless that happens avoid …….
In short, ………
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