Showing posts from November, 2016

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.

MCX Aluminium to shed some recent gains

From the below chart of MCX Aluminium, it started its upward journey after forming a bottom in October 2015 and thereafter it is moving precisely in a rising channel formation, this gives an indication that the trend is positive. Moving averages are also showing positive action. However, prices have arrived near the resistance of the channel which can eventually lead to a short term reversal. As per wave patterns, it is clearly visible that prices are as of now moving in a double correction (a-b-c-x-a-b-c). At current juncture it has completed or in a process to complete wave a of the second correction. Wave a can also exceed till 120 - 121 levels. Following there has to be a good reversal which will start wave b on the downside. In short, expect prices to move down till 110 levels for short term. The major trend will continue to be positive as far as prices persist in the rising blue channel.

SBI: Head and Shoulder, Neo Triangle

SBI was forming a topping process from the month of August 2016 till November 2016. The topping process ended in a head and shoulder formation supported by volume. The left shoulder was accompanied by heavy volume but as the pattern started forming the volume receded. The level of 245- from where prices have bounced couple of times was breached, giving an indication the lower tops are in place. Short term moving averages have given a bearish crossover which supports my above mention view. As per wave analysis, prices formed a extracting triangle at the top and then moved down thereby ending wave y at the top. One complex correction was ended from the bottom to top and now its correction will start on the downside. As far as prices don't move above level of 256, the bias will remain negative for this banking stock. According to H&S pattern, prices can touch the level of 220. SBI Daily Chart Disclaimer: The above content is not for trading perspective. Plea