Understanding the trend of MCX Crude with the application of Elliott wave, Channels and Trendlines!
Crude has been trading with high volatility over past few weeks. This energy commodity formed intermediate top in the start of 2017 and since then expanding structure is under formation. In last 2 months we have witnessed some relief sign however this has brought prices at the important trendline resistance. We follow Elliott wave theory to understand the trend which is suggesting that Crude can again start to show weakness and it can resume the medium term trend on downside. But negative confirmation has yet to take place. Below is the part of research taken from Commodity Report on Crude.
MCX Crude daily chart:
MCX Crude Sep 60 mins chart:
(Part of research taken from today’s “The Commodity Waves Short Term Update”)
“In the last previous trading session Crude retraced on upside and closed on the positive note at 3100 levels.
As shown in 60 mins chart, prices are in correcting prior down move and looking at the sharp fall, one should avoid creating long positions. On upside 3110-3150 will act as resistance zone where consolidation was witnessed. Move below …. will suggests that next leg on downside has started. Prices have also arrived at the 20 periods EMA which will act as resistance.
In short, Crude can move lower. Break of … will take prices towards 2970 levels.”
To know the important reversal areas, you can get access to “The Commodity Waves Short Term Update” which covers Gold, Silver, Crude and Copper with Elliott wave and basic technical analysis.