MCX Crude to test the support of the channel and Eliott Wave Analysis

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MCX Crude has shown a sharp reversal on Friday losing more than 2% and closing below the psychological level of 3300. International Crude is also facing the resistance of $50 even after the inventories reduced giving an indication that news was factored in.

MCX Crude, has given a bar reversal on last Thursday and on the following day it gave a confirmation. For the downtrend to continue, it is imperative that prices should break the level of 3240 which is the  previous bottom. Breaking this level at faster pace will open the possibility of 3100 levels.

From wave perspective, prices moved in a (a-b-c) pattern, in which wave c was almost equal of wave a to b. In wave c, wave iii was extended and wave v was a failure, thus giving an indication that prices will reverse soon.

In short, the bias is negative for MCX Crude as prices can test 3100 in near term.

MCX Crude (1st month contract)


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