Showing posts from January, 2017

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 Crude Oil on the brink to reverse

MCX Crude Oil Daily continuous chart The benchmark WTI crude oil, in the last month of last year rallied and crossed the level of $55 per barrel after OPEC and Non- OPEC members agreed to cut down the production. However, in the following month the inventories suddenly spiked up despite the measures taken, thus making Crude oil vulnerable. After the events occurred, prices were moving in a range of $53-$55 per barrel and it continues to remain so, but how long? MCX Crude showed massive gains last week when it crossed 3700 levels but it was short lived as it reversed on the same day, thus showing loss of momentum by buyers. The overall picture indicates that the resistance is now fixed at 3700 levels. Technically speaking, prices has not discontinued the higher high and higher low formation. It is also above both the moving averages (20&50), giving an indication that the trend is positive. However, MACD has given a sell signal and RSI have started falling. As pe