MCX Gold Quarterly: Exit Long On The Rise

Dated 10/10/2016

MCX Gold Quarterly: Exit Long On The Rise

MCX Gold (Price figures below are in Rs/INR per Kg)

The quarterly chart above is displayed which has data since the listing on MCX in 2004.

A complex Wave (b) structure is in progress since the end of the first peak of 32421 in 2012.

On hindsight, we have the advantage of adjusting the structure to build a proposition, base and logic for future expectation of the movement.

Wave e of Wave (b) is in progress which can end at either of the retracement levels or below it but not violating 24451 formed in 2015.

Violation of 24451 will rule out the above base and proposition that is being created.

The retracement levels of the rise from 24451 to 32455 are placed at 29427, 28544 and 27513.

Violation or sharp sustained fall below 24451 can have severe repercussion for the fall.

Currently, we may not discuss it as expectation is for a higher bottom in relation to the last major bottom of 24451.

The higher bottom could be at retracement level or could be lower by not violating 24451.

But for near term to short term correction to retracement or below is likely unless immediate breakout and close above 32455 is witnessed.

As long as 32455 is not crossed, Gold could be profit booking pressure at higher range or pullback towards 32455.

Strategy for Physical Investors

Retracement levels of 28544 and 27513 could be for accumulation.

Strategy for Futures Traders

Once bounce is seen from retracement then traders can buy with low below retracement as stop loss.

Disclaimer: There is risk of loss in trading in derivatives and the report is not to be construed as investment advice. The information provided in this report is intended solely for informative purposes. The author, directors and other employees of CC Commodity Info Services cannot be held responsible for the accuracy of the information presented herein or for the results of the positions taken based on the opinions expressed above.