MCX Gold Analysis. As on Thurs 8 April, 2021. CMP 46,300 Posted at 8:00 am.
Bottom line : Price remains in a downtrend. But there are conflicting signals, and the picture is not clear.
An impulsive 5 wave up, or a rally above 49,500 may cause a re-evaluation.
Price remains in a downward trend channel, even though the last few sessions have been positive for MCX Gold. The 10 EMA is also comfortably below the 20 EMA on the 3 day chart.
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On the 3 day chart, wave C = Wave A, which could well result in a decent upmove.
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From the 2 week chart below, preference for the larger correction to end is apprx the 37,000 ~ 41,000 level, where there is strong trend channel support.
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Monthly & 2 monthly charts : When one considers the below very long term charts, it becomes likely that if the larger uptrend is complete at 56,191, then price has many years of consolidation / correction ahead. So the big question is – is the larger uptrend complete. It does appear so. But the internal sub-waves of wave (5) in blue (above 2 week chart) do not count so well, which raises the possibility of an upward ending diagonal that would result in new highs.
