Crude Mcx

Crude broke below the rising trendline from the June bottom. MCX prices may go back to test the neckline support at 2745. Resistance is near 3100



Crude fell below the level discussed day before. The implications are that the entire rise from the June bottom is corrective. The rising trendline on the chart at 47.10 is the last support below which we should be in wave E down.


Failure to go above the 61.8% mark means that we may now be forming wave E of a running triangle. Wave E can either test the neckline at 42.80 and bottom there or maybe even break below it. If 42 is broken then maybe even a alternate pattern will develop with a dip to the 61.8% retracement mark near 37.3. Ideally we should not break 42.



Crude prices closed above the 20dma and the fall did not go below the wave i high at 47.74. So we may still be in wave iv and wave v to a new high can still be pending. So if 47.74 holds wave v to 52.50 can develop.



Alternate scenario for crude. Was expecting wave v to go higher but the failure of prices to go above the blue line at 61.8% or 50.20, can mean that wave c truncated here and we start a move lower. A close below 48.25 the 20dma would further confirm this and we may then see crude slip back to 45 or even 42 as the case maybe.



Copper could pull back to the 20dma at 2.83, and if it closes below that then take it seriously for a possible deeper set back.


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