MCX Gold Analysis

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.

On the 3 day chart, wave C = Wave A, which could well result in a decent upmove.

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.

 

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.