MCX Crude post making a low near 2990 levels currently moving sideways and has managed to sustain the rise indicating that a short term low might be formed near the same levels. However, it becomes important to analyse the bigger degree structure of this commodity.
Following was published in the monthly research report on 08TH August 2019 – The Financial Waves monthly update
MCX Crude weekly chart
MCX Crude daily chart
(Below extract is taken from Monthly research published on 08th August 2019)
Wave perspective: As shown on the weekly chart, post falling steeply and making a low near 2990 levels prices witnessed recovery on upside. Prices are moving in the form of Complex correction pattern and the last set of correction is on-going in the form of wave Z. If we carefully look at the RSI indicator we can see that the oversold zone for the same has been near 30 levels from where prices bounced off to relieve its zone.
…. Weeks’ Time Cycle: We are showing ….. weeks Cycle on the chart and this cycle has worked amazingly well in capturing the major lows. Post the cycle low formed near 2990 where wave (a) was completed buying was witnessed. So over the short term we can expect prices to consolidate within the range of 3525-4200 levels and post which move towards higher levels and the low of 2990 should be protected on the downside. As per this Cycle the next low is near June, 2020.
Understanding the internal structure: To show the internal structure we are showing the daily chart of Crude. We have shown internal counts of primary degree wave Z which is ongoing. The last leg of correction wave (c) is ongoing on the downside in the form of Ending diagonal pattern.
In short, Crude has continued to be in limelight and the trend over the short term looks to be range bound between 3500-4200 levels. A decisive break below 3500 which will indicate the strong selling emerging and we might head towards new cycle low. However, break above 4200 might push prices higher towards ….levels on upside.
Please Note– Levels are hidden purposely. Kindly use this article for educational purpose only.
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