We have been using patterns in order to identify the reversal areas. Crude has exhibited classical Diametric pattern on short term post which we saw a strong positive breakout. Below research shows how one can use pattern analysis for trading.
Crude has been moving exactly as expected and following the Elliott Wave theory very well. Basic techniques coupled with wave analysis helps us to identify and capture trends. Below is the hourly chart showing detail analysis on hourly chart of MCX Crude published in our “The Commodity Report Short Term Update.”
MCX Crude Dec 60 min chart 🙁 Anticipated as on 3rd of November, 2018)
MCX Crude Dec 60 min chart 🙁 Happened as on 4th November, 2018)
(Below is the gist taken from the Commodity report published on 3rd of December, 2018)
Elliott Wave analysis:
Anticipated: As shown on hourly chart, wave f is completed on upside near 3730 levels and wave g is ongoing of Diametric pattern. Prices are currently trading near its channel resistance from where reversal is seen many times. So as per channeling technique we can expect reversal towards channel support… On other side a decisive break above channel resistance will indicate rally can extend near 3800 levels confirming wave g is completed on downside. BANG ON!
Happened: Prices provided a break above channel resistance and almost managed to fill the gap area of 23rd November. Now if prices surpass above 3800 levels and protect previous day’s low then …………
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