Thursday, April 11, 2019

Gold – Classical impulse down complete and starting the up leg?


MCX Gold has corrected sharply from the levels of 34000 to 31500 on downside. It formed classic Elliott wave impulse down.

Look at the below chart of MCX Gold picked up from “TheCommodity waves short term update

MCX Gold June 60 min chart: 

Following was mentioned in the morning research report –
 
On the daily chart of MCX gold (shown in actual research report) we can see that the rally that started form 31400 seems to have stalled near the resistance at 31300. We can see the prices consolidate to digest the strong upmove, this is supported by the fact that the RSI can be seen going slightly flat.  We can also see that a new leg has begun in the form of corrective wave a which will push the prices higher. 

On the hourly chart we can see the prices have broken above the downward slopping channel with good momentum, currently we can see it going sideways and forming a continuation pattern, which is supported by the fact that the RSI is making a move downward move from the overbought level. 

In short the trend for MCX gold seems to be sideways to positive with the immediate resistance placed at 32300 and the support at 32000. If the level of 32300 is broken on the upside with we can see the prices touch the levels of 32500 provided the level of 32000 is hold on the downside. 

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