Showing posts from March, 2015

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.

Nifty to climb 9200-9300 levels?

Nifty has corrected by almost 4.5% from its all time high of 9119 levels. The recent down move seems to have lost momentum and it seems that the major trend for the index which is undoubtedly positive will resume. Majority of the indicators are in oversold zone and it is difficult now to say what will be the next move from viewing the indicators. In the advance version of Elliott wave theory i.e Neo wave Prices are moving in a diametric pattern. Here in this case it is Bow and Tie Diametric Pattern. It has seven legs in it (a-b-c-d-e-f-g). All the legs in this pattern are corrective in nature. Currently it is moving in a wave f and it is on the brink to complete this leg on downside, thus opening the possibilities for the next leg on upside which will be wave g. This wave g will move above its previous high. In Nifty the previous high is 9119 levels, so if wave g has to cross its previous high which wave e it will surpass 9119 levels and can possibly move up till 9200-9300 le