Showing posts from November, 2014

MCX Copper in Double Correction

 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.

USDINR Elliott Wave Analysis

USDINR has been moving in a rising channel, forming a higher highs and higher lows which is a positive formation. Currently it is quoting near the support of the channel and can move up to test its previous highs. The momentum indicator RSI remains above the level of 50 which is a healthy sign. As far as the channel is intact the bias remains positive. As per wave theory, the entire up move from May 2014 till date is been corrective in nature. At present it has completed double corrective pattern (a-b-c-x-a-b-c). The probability is higher as the double corrective pattern can be converted to triple corrective pattern (a-b-c-x-a-b-c-x-a-b-c). If it does then the pair can move up till 62.00 levels or even higher till 62.15. However, if the channel is broken then it has completed double correction pattern and will start the next leg on downside which can test at least till 50% retracement of the previous up move from 58.20 to 62.00 levels which comes to 60.11 levels. In short, a