Crude post making a low near 3000 levels has shown recovery on the upside. The upmove has been corrective in nature and therefore it becomes important to capture major reversals during such times.
We have now turned bullish on Crude as prices are making higher high formation indicating an important low is in place for now near 3000 levels.
Below is the chart showing detail analysis on Crude using channels, Moving average and Elliott Wave theory.
MCX Crude Jan 60 min chart: (Anticipated as on 18th Jan, 2019)
MCX Crude Jan 60 min chart: (Happened as on 18th Jan, 2019)
Following is the research taken from The Commodity Waves Short term update published on 18th of January, 2019 in the morning.
Elliott Wave analysis:
MCX Crude in its previous session opened on a flat note near 3708 levels and later tested its demand on either side to close marginally negative making Doji candle on daily chart. As long as the low of 3500 is protected on downside move towards higher levels can be expected.
As shown on hourly chart, prices are forming Complex Correction pattern within wave b (blue) in which wave x (red) is currently ongoing. Prices are moving within upward sloping blue channel and bounced back from channel support. Break above 3750 levels will create buying opportunity for move towards 3800 followed by 3850 levels on upside. On downside 3600 is placed as immediate support.
In short, trend for Crude looks positive over short term. Rally can be expected towards higher levels near 3800 followed by 3850 if prices manage to break above 3750 levels keeping 3600 as immediate support. BANG ON!!
Happened: Prices have behaved in-line with our expectation, witnessing a strong rise and making a high near 3833 levels and closed on a positive note.
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