MCX Gold Elliott Wave Analysis. As on 9 Nov 2019. CMP 37,682
Bottom line : Bullish.
We are basically looking for price to touch the blue trend channel line. But it could touch at 37,000 or 38,000 depending on the structure that plays out. Gold remains a buy or hold for a target of 45,000 – 46,000.
From previous posts :
From Oct 25 when price was 38,342 : Price reached our buy zone (36,000 – 37,000) a little too quickly on 1 Oct.
Do read the below post carefully (including the previous ones copied below). It is certainly a tradeable opportunity whether in goldbees, or MCX instruments, or something else.
The preference is for a test of the 37,000 level likely sometime by end nov for a target of 46,000. But any new highs soon may mean the wave 3 is still in progress.
From 30 Sept when price was 37,500 : With MCX Gold, the bias is clearly to the upside. So it is not a bad idea to hold current positions or scale in from current levels – in case this wave 3 is not yet complete and still has further highs to come.
In case the wave 3 to the upside is complete, then price is likely to test the lower blue channel trend line, which should still be anywhere from 2-6 weeks away. This should also correspond with a price level of between 36,000 – 37,000.
Our post of 13 Sept has so far turned out to be quite accurate.
From 13 Sept : MCX Gold could have put in a temporary top at 39,905 (wave 3 top).
A decline over the next 6-12 weeks to apprx 37,000 level would complete a wave 4 correction.
Subsequently, price should rally in a final burst of optimism for Gold near the 46,000 level to complete wave 5 of 5.
(MCX Data goes back to the year 2004 so we don’t have a multi-decade view that we have on Gold in USD).
When gold does reach near the 46,000 level, expect plenty of positive news stories of Gold and many comparisons with Equity and other investments. This would also be likely the time when the public would want to to buy and own gold in what ever form they can.
But the upcoming euphoria with gold is unlikely to last. Wave 5 of 5 warns there would be a strong correction ahead.