GOLD MCX Daily
Prices closed below the 20dma and heading to the 40dema at 29400. If that breaks then the lower Bollinger band is at 29065 as the next support near a 50% retracement of wave 1.
Gold broke below the 20dma and the rising channel for the trend. All the near term tops during 2017 that rose in 3 waves and broke the channel so far were followed by further declines. So far this looks the same. The move from 1204-1357 is 3 waves up and has broken down.
What this can mean is that the entire rise is still corrective in nature and will go back to test 1200 again. The final confirmation level is at 1278 below which the rise cannot convert to an impulse anymore. The 2016-2017 period will end up looking like a triangle when prices test the lower trendline once more. And a breakout above the neckline at 1350 will make the 2013-2017 pattern a inverted head and shoulders
Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Views expressed in this article are purely of the author – Mr Rohit Srivastava – a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd