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Showing posts from April, 2013

MCX Copper in Double Correction

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 MCX Copper continuous hourly chart From the above chart, the red metal is moving in a lower high and lower low formation and it is precisely moving in a falling channel Recently the metal faced the resistance of the channel and has broken the support today which opens further negative possibilities. As per wave theory, prices are moving in double correction pattern as per the chart (a-b-c-x-a-b-c) After completing first correction, prices formed wave x close to 740 levels and now since all the important supports are broken it is very much evident that prices are poised to falter and can move below its previous low in form of wave a of second correction. The summation is prices are poised to plunge near till 680-670 levels as far as 733 is intact on the upside.

Nifty continues to move in a downtrend

In our past few updates we had been mentioning that, "Nifty will move down to 5600 as many brokerage houses were expecting it to reach till 6200-6300 mark." - BANG ON!!! We had also been mentioning that, " Nifty is at crucial juncture, a move above 5970 will provide a breather to bulls but failure to cross this level will take drag Nifty back to 5600." - BANG ON!!! On the daily charts we can observe a distribution pattern on Nifty, which clearly indicates that a top is been place at 6112. The breakout came on 25th March 2013. Now the picture is very clear that sell on rallies would be the best strategy that can be adopted. We know the power of moving averages. We have be using this technique in Nifty from some time. We can observe that Nifty has crossed 20 SMA but failed to move above 50 SMA after a bearish crossover. This indicates that the trend remains bearish. Other oscillators such as MACD is in sell mode, RSI bounced from 30 but prices failing to cro