Market Analysis With Megh Mody

Crude Oil (daily continuous chart) MCX Crude Oil soared last month from 2950 till 3450 levels. However, the scenario is not looking bullish due to bearish signals forming at the top along with the negative follow up. As per the candle stick pattern, prices formed an engulfing pattern at 3450 levels and on the following day prices continued the negative momentum.  According to wave theory, the rise from July 2017 till the top of 3450 is corrective in nature ( 3 wave). The possibility for prices to be in a running triangle are likely and so wave e on the downside is expected. So if wave e is pending on the downside, prices will test 2900-2800 levels. As of now, expect prices to test the level of 3150 over short term as far as the level of 3400 is intact on the upside.

Nifty (Daily Chart) Last week Nifty fell 2% from the all time high of 10179 levels. Mid caps and small caps eroded all the recent gains which eventually ended up in a pain.  This week there is an RBI policy meet  lined up and looking at the recent momentum of the benchmark it is quite visible that the negative trend will continue. Nifty as of now have not broken any of the previous lows. Last week it made a low of 9687, thus protecting its previous low of 9685.  However, looking at the current structure it is possible that several supports are likely to be broken. As per wave theory, after making a high of 10179, prices fell in an impulsive fashion which was completed when it made a low of 9687. The recent 3 day up move is corrective in nature and can be wave ii of wave c on the downside.  According to Fibonacci projection prices have retraced 100% of wave a. Wave c can extend till 161.8% of wave a which can move down till 9500 levels in near term. In short, R

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.

MCX Zinc (Daily Continuous) MCX Zinc is one of the best performing industrial metal when compared with others. By using combination of basic and advance technicals one can come across the forecasting and direction of this metal price. From the above chart (daily continuous), prices from early 2016 started moving in a higher high and higher low formation and also moved in a rising (blue) channel till November 2016. As there is no discontinuation of the positive formation, along with the recent breakout of the falling blue channel, the overall bias for this metal is firmly positive. As per wave theory, prices have completed (a-b-c) pattern, post that the movement seems to be impulsive. the possibility for wave iii is open taking prices higher till 205 levels which is 100% of wave i or more than that. In short, the formation is positive, Zinc will continue to outperform and can test 205 levels. Disclaimer: The above analysis is only for the study. No trade sha

NG Daily Continuous chart  From the above daily continuous chart of Nat Gas, it is clearly visible that prices broke the lower band of a sideways pattern. NG which was moving in a consolidation pattern of 200-185, has finally come out of it by breaking the support of 185, thus opening negative possibilities. As per Neo Wave analysis, after forming a top of 264 in the year 2016, prices moved in a three wave structure down, Where the first wave was a three wave structure, second wave was a five, forming an extracting triangle and the last will be the impluse wave which can drag prices further lower. In short, the bias for NG remains firmly negative as prices will moved down till ..... odd levels in near term. Learn Elliott Wave and Neo Wave in a two day seminar, so that you can get the desired calculation of the above asset class. For more details mail me meghmody@gmail.com

MCX Copper (Daily continuous chart)   Not so early I had written  MCX Copper Elliott Wave Forecasting, but was very skeptical on its future movements. In the previous article of Copper, I had mentioned that,   “As per Wave theory, after steep rise from 300 to 415 levels, prices are in the making of Flat pattern (3-3-5). As of now it seems that wave c of the flat pattern is over and prices are set to resume the uptrend. However, break of 365 will open other possibilities, which can eventually turn into another pattern.” Prices failed to form a flat pattern and eventually turned into complex correction pattern (w-x-y). Where in y it took more time and formed a bow and tie diametric pattern which comprises of (a-b-c-d-e-f-g) seven legs. After completing wave y in diametric, prices have started moving in a positive direction and can move till  or above it. In short, the bias for the red metal is firmly positive as it was before as it is expected to reach near 415

MCX Nickel (Daily Continuous chart) MCX Nickel tumbled from the top of 816 levels to mark a low of 558 in the month of June 2017. However, the trend which was earlier negative have shown a reversal. It will be early to judge the reversal but with the combine techniques of advance and basic technical studies, it is easier to jump on the conclusion. From the above daily continuous chart, the industrial metal has started forming a higher highs and higher lows. Prices which made a high of 586 (showed blue line) was crossed and later when it corrected it halted above 568 (showed red line). The moving averages which is a lagging indicator has given a bullish crossover after a bearish crossover in the month of March 2017, indicating that prices will move in the north. One of the popular indicator RSI has also moved in a positive direction after giving a positive divergence, currently it is above the center line. As per advance technicals which is Wave theory, prices have com