According to the news-focused analysts, commodities as a whole had resolved to quit their bear habits in 2011, and soar: “The bull market in commodities is likely to continue for some time.” (Dec. 8, 2010, Wall Street Journal). “The crash of 2008 in commodities was a mere blip… The rally in prices shows no signs of slowing.” (March 9, 2010, National Post)
MCX Goldon the monthly charts consolidating for the last for the 5 years in the band of Rs25000 – 32200 per 10 gram. Sentiment on the monthly charts suggests the long term sentiment is reversed to the negative bias and posied towards the lower end of the balance Rs25000 w- longer term trend which is expected to happen around 3-4 months duration.
MCX Gold surges to a high of Rs31326/Kg when Mr.Donald trump was leading the election results on 9th Nov 2016. Around 10.40p.m gold topped out and from there post the election announcement MCX Gold dropped to a low of Rs29269/Kg on last Friday (Nov 11,2016). The dollar rose to its strongest level since February. Bonds continued to get pounded, with losses exceeding $1 trillion this week.
It is almost a “V”-Shaped recovery from the May 2015 crash in Zinc Futures. Post the mid of July 2016, momentum in zinc had came down drastically. When the momentum declines buyers started getting frustrated with their long holdings. And when market conditions are not favoring those buyers naturally they turn to sell their contracts and there by triggering shorter term selling.
Is the long term trend in Nickel Started? To answer this question we can start with monthly nickel charts with predict cycle indicator. You can notice from the MCX nickel monthly charts that Predict cycle had turned positive – we are possibly in the long term uptrend. After 8 months of consolidation on the larger timeframe Nickel is currently trading above 8 month high.
Before stepping into Monday its better prepare yourself to face the music of volatility in the markets. Last Friday the outcome of BRExit vote on leaving the European union had made a huge shock wave across major financial markets including Stocks, commodities and currency markets. And Fridays price action had done a major structural damage on the time series charts.
Since February 2016, Gold is trading in sideways mode between 28,000 – 30,000 per kg on the broader scale. Interestingly China (Shanghai Gold Exchange) last week launched its own yuan denominated Gold contracts which will become the reference price for gold in the country. The benchmark price for a 1 kg contract was set at 256.92 yuan/gram on Tuesday at the launch of the benchmark contract.
Just thought of posting quick update on Gold Medium term trend. Price structure of the Gold Weekly Charts are moving in a sideways bearish trend since mid of 2013. Longer term bearish momentum got faded out completely. In financial markets such fading moment mostly happens near the end of the trend(bearish/bullish). And the weekly outside bar on the Gold charts due to Fridays fierce price moment indicates bullishness likely to resume in Gold.