MCX Gold: Crucial role of Time Cycle in Capturing lows!

We have been using Time cycle across asset class along with Elliot wave technique. It helps in understanding the cycle of particular asset as well as teaches us in timing the market. We have been able to capture major low not only on major indices like Nifty 50 and Bank Nifty but also on major stocks and commodity.

Below is the chart showing detail analysis on MCX Gold using Hurst Time Cycle along with Elliott Wave technique.

MCX Gold weekly chart : (Anticipated as on 9^th November, 2018)

Following is the research taken from monthly report published in May 2018.

Hurst’s Time cycle 105 weeks: Time cycles are very important technical analysis study which is used to identify probable reversal in prices. Cycles are more important during the lows as different cycles get synchronized at lows. We can see this 105 weeks’ Time cycle working extremely well. Prices are forming important lows every 105 weeks and the recent low was also made near 28055 levels which was also the time cycle low.

Below is the detail analysis taken from monthly report published in November 2018.

In previous monthly update of MCX Gold we mentioned that “Gold can resume the multi-month up move once31600 is taken out on upside. We stay highly bullish on this asset for the target level of 34500 levels given the depreciation in INR and expected retracement in Comex Gold. Short term support is near psychological 30000 levels for this asset class!” Prices are moving in-line with our expectations and made high near 32336 levels.

As shown on weekly chart, bigger degree wave (4) is completed near 24500 levels and next leg of impulsive rise in form of wave (5) is ongoing on upside forming Ending Diagonal pattern. We can expect sideways action to continue as prices are quoting near channel resistance. Moreover break above 32455 levels on upside will continue the momentum towards higher levels near 34500 levels.

Let us see if the start of wave c down in global market provides necessary support to the Gold prices which can start moving higher in the form of wave iii of ending diagonal pattern towards ……levels. It is time to shift asset allocation eventually from equities to Gold… Time will tell if it start to glitter again!

See yourself the detail analysis about major indices and commodity in our monthly report published under the name of “The Financial Waves Monthly Update”- Check here

Learn how to apply this technique in just 2 days span in my training to be conducted on 24^th and 25^th November in Ahmedabad. Register now