Market Analysis With Megh Mody

MCX Gold (Daily Continuous contract) From the above chart of MCX Gold, it is very clear that the trend is now negative as prices reversed from the channel resistance and is now moving in a lower high and lower low formation. Prices also formed a topping process by making a bearish Head and Shoulder pattern. This pattern is completed as the neckline is breached, placed close to 30,700.At present, the yellow metal is hovering near the neckline and can move down from current juncture. As per wave theory, prices is set to move down in one higher degree of wave b in which it has completed wave a and wave b. So the possibility of wave c is open on the downside which is impulse in nature or it can end up in a diagonal. In short, MCX Gold is set to dip near to 30,000 followed by 29500 where the channel support is placed over short to medium term.

Daily Chart From the above daily chart, USDINR seems to have halted its current rally which can possibly lead to profit booking dragging prices lower. As of now it is trading below short term moving average of 20 EMA (Red). From Wave perspective, prices are moving down in a double correction (a-b-c-x-a-b-c). Currently it is trading near the resistance of the small channel where wave x will be completed and wave a will start followed by wave b up and eventually wave c down. In short, prices will tumble in near term close to 66.7 over short term. However, any move above 67.6 will negate the downside target, so it will now act as a crucial resistance level. Learn Elliott Wave and Neo Wave on 23rd and 24th June. Learning the Wave theory will help to identify the reversal points well before the market does. "Don't follow the crowd blindly, think objectively". The session is a two day session which will be a webinar and the costing will be 10,000/- for two da...

Daily Chart From the above Daily chart of Nifty, prices are moving higher in a rising blue channel and currently trading above both the short term moving averages 20 EMA (red) and 50 SMA (blue). A bullish crossover is also seen from these moving averages. RSI on the daily chart is above the center line, thus opening positive possibilities. The blue channel is drawn to understand the resistance for this index. However, the first resistance will be around the previous peak which is 10900 levels followed by 11100 levels. From Wave perspective, the previous downfall was a three wave structure, the current up move can be a three wave or an impulse. So I have marked i/a followed by ii/b, currently the ongoing leg can be wave iii or wave c. In short, Nifty is poised to soar near till 10900 levels over short term. Sustainable move can drive it further till 11100 over medium term. Learn Elliott Wave and Neo Wave on 23rd and 24th June. Learning the Wave theory will help t...

Midcap Daily Chart Midcap stocks are positively poised at current juncture. From wave perspective prices tumbled in a three wave structure (a-b-c) and then changed the direction from negative to positive which I think will also be a three wave structure (a-b-c). The overall trend looks firmly bullish soaring prices to its all time high. In short, the index will rally further pushing prices higher till 21500-21700 levels in near term.

USDINR Daily Continuous As per the above chart USDINR have completed impulse wave (1-2-3-4-5) on the downside. After completing wave v which was a truncated, prices rallied and gave a bullish break in a falling channel. This is a sign of trend reversal. However, more confirmation is required for an positive outcome to emerge. Sustainable move above 64.8 will give an indication that prices are poised to rally near till 65.30-65.40 levels. Failure to protect the above mentioned level will negate the downside target. In short, expect prices to rise near till 65.30-65.40 levels in near future as far as the level of 64.8 is intact on the downside.

MCX Zinc (Daily Continuous) MCX Zinc was the best performer along with Lead last year. This year the metal had started moving lower due to profit booking and other fundamental reasons. Looking at the Technical chart, Wave counts have been plotted and I have come to the conclusion that MCX Zinc is moving in an Irregular flat pattern (a-b-c). In which wave b is strong, that means wave b had retraced till 161.8% of wave a  (shown in the chart). Currently prices are moving down in wave c. This concludes that wave c will not retrace complete of wave b i.e 199 levels. As of now 61.8% of wave a to wave b is completed, now the immediate supports is at 100% of wave wave a to wave b placed at 213 levels. In short, expect prices to tumble close to 215-213 support zone over short term. The bias will be firmly negative for this metal

MCX Silver Daily Continuous As shown in the Daily chart of Silver, prices have started moving lower breaking its previous day low and have also closed below both the moving average 50SMA (blue) and 20 EMA (red). This opens the possibility of short term negative trend. Wave theory suggests, prices are moving down in the form of wave g of bow and tie diametric. The current downfall is corrective leg and so it will continue to take its time to correct. In short, prices of this industrial metal will falter any time soon. The bias is firmly negative, expect prices to test 37000 levels over short term.