Understanding
the trend of Gold on year on year basis with Elliott wave, moving average and
channeling technique.
The year of
2016 is going to complete in next 2 days and it is important to know how Gold
prices have behaved throughout the year. Here we can see that year of 2016
started with reversal on upside and Gold moved higher from 24500 to 32500 level
within a span of 6 months. In this period’s bulls completely ruled and
outperformance was witnessed. However post that Gold topped out and since then
capitulation is ongoing. Assuming that prices can close the current year near
27000 level, Gold will still manage to gain 10% from the start of 2016. So what
this indicates for 2017? Will next year Gold retest the high of 32500 level or
low of 24500?
Below we
have shown Gold chart taken from “The
Commodity Waves Short Term Update”. Here we have hided the wave counts
which is shown in original report. The important thing to watch is that prices were
continuously finding resistance of 10 days Exponential moving average and
recently prices have managed to cross above the same. This indicates short term
reversal.
MCX Gold Continuous Daily chart:
(Part of
research taken from today’s “The Commodity Waves Short Term Update”)
Wave analysis:
In the last update we mentioned that, “prices
have retraced the last leg of down move in faster time which was not seen in
the entire down move. This increases the minute wave (v) of wave (c) might have
completed.”
In the last trading session Gold
consolidated in a range. Post the sharp rise, this kind of consolidation
indicates positivity.
As shown in daily chart, RSI has
reversed from the zone of 30 level along with positive divergence and has given
close above the prior bars high. This has changed daily bias into positive
side. Close above 10 days Exponential moving average indicates that trend is
reversing on upside. Now as long as prices hold above prior bars low trend will
remain positive.
(60 mins chart is not shown purposely which is covered in the
original report with Elliott wave)
As shown in 60 mins chart, prices look
to be trading in minute wave ….and post the same Gold should move higher. 100
periods Exponential moving average which acted as resistance earlier will act
as support now as per polarity reversal. On downside 26970 will continue to act
as important support.
In short, Gold trend is positive. Move
above ……
To know the proper trading strategy
and understand the short to medium term trend of Gold, Silver, Crude and
Copper, subscribe to “The Commodity Waves Short Term Update”and
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