“One day positive and one day negative is the strong sign of sideways action in yellow metal. If prices failed to breach the previous high of 1421 levels then there is probability of negative closing in today’s trading session”. Prices were unable to break the strong resistance of 1421 levels and closed on a negative note. During the last four trading days we have observed an alternate bars and strong sideways movement in the range of 1422-1380.
As seen above in the MCX Gold 60 mins chart, prices turned lower in the previous trading session from the strong resistance of 27500 and closed near the lower end of the small upward sloping blue channel. As per wave perspective, prices have ended wave c of simple correction near 27500 levels. A move below these levels will break the higher high and low formations.