Showing posts from September, 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.

Aluminium: Triple Correction to end

Daily continuous chart of Aluminium Aluminum is a laggard in price movement  as compared other base metals. However, it seems now that it is nearing to a completion of a pattern. Pattern typically known as Triple correction in Elliott wave theory. Triple Correction (a-b-c-x-a-b-c-x-a-b-c) has two wave x and three a-b-c, normally this pattern occurs when simple a-b-c is unable to reach the target. The first (a-b-c) shown in a rectangle is a flat pattern followed by wave x. The second (a-b-c) shown by circle is a simple zigzag followed by wave x and the third is either wave a of wave a quoting at 132 of it is on the brink of completing in a flat pattern. A move below ... will give an indication that third correction is completed and prices are set to reverse. The correction will be steeper and will be here to stay. The resistance is at ... any move above this level will give an indication that third correction is going on.