Thursday, September 12, 2013

MCX Crude: Trading using Elliott wave counts, RSI but SYRIA!!!

CNBC, Aug. 27 Crude Bolstered by Syria Jitters. The conflict over Syria threatens to create new geopolitical fissures that recall the days before the 2003 Iraq invasion."
Reuters, 7th September U.S. crude oil futures settled on Friday at their highest level in more than two years as investors rushed to buy amid concerns a possible military strike against Syria could cause oil prices to spike
However, the chart below exposes a flaw in this logic, which is: Crude oil prices actually broke out of a multimonth triangle pattern above$100 in late June 2013, not in the month of August 2013 and provided the positive confirmation much before than the news came out.

Nymex Crude weekly chart
MCX Crude daily chart:
Wave Analysis:
In MCX Crude we saw triangle pattern breakout on upside in the month of May 2013 and moved higher. After the pattern breakout, prices breached six years high of 6480 and made life time high of 7784. Above both the charts clearly indicates that rally happens in crude before the news.
This rally in crude shows the power of technical analysis which helps us to catch the impulsive move in MCX Crude. Do not wait for the outcome or news or else you will miss the strong trend.
RSI on MCX Crude also shows reversal in indicator everytime it touches 70 – 80 zone. But this does not necessarily mean to short at that level. It is important to combine other short term techniques from trading perspective.
Trade objectively and get comprehensive research on MCX Crude and also in MCX Gold, Silver and Copper in our commodity report – The Commodity waves STU published on daily basis.  
Intraday traders can also avail our calls on all 9 commodities traded on MCX exchange through SMS or Yahoo messenger with proper followup and efficient Risk reward ratio.
For more information write to us at or call us on +91 9920422202 / +91 2228831358 or visit

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