MCX Gold: Elliott Wave Complex pattern

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Gold Daily chart continuous

From the Daily chart of Gold, the yellow metal is moving in a higher high and higher low formation. However, prices have arrived near the resistance of the blue channel.

On Friday, prices opened with a gap up but closed in a negative terrain more than 50% within of its previous day bar body. This pattern is known as dark cloud cover. It forms at the top and it is more significant when it forms near the resistance zone. Daily RSI in is overbought zone and have exhibited negative divergence which is a sign of caution.

As per wave perspective, prices are moving in a double correction pattern (a-b-c-x-a-b-c). Here it has completed first correction (a-b-c) followed by wave x at 28055. Currently it is now in wave a and it is on the brink to finish the current wave. This opens the possibility of wave b on the downside.

In short, a follow up action today is crucial. A negative bar will open negative possibilities which will halt the current uptrend and can drag prices near till 30000-29950 levels

Comments

Phani Kumar said…
Hey, thanks for the information. your posts are informative and useful.
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30 July 2020 at 14:44
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