Crude Oil which touched a high of almost $120 in international markets has fallen heavily in last couple of days .
However signals were already available on the price charts of an 'impending downmove'.
The chart of Crude Oil on MCX clearly shows a 'negative divergence' on the RSI and MACD two commonly used indicators.
After touching a high of Rs 4785 it has fallen to current level of Rs 4500.Indications are strong that in coming days it may most likely test sub-Rs 4400 initially and then still lower levels of Rs sub-Rs 4200/-.
The divergences will be negated if price rises beyond 4800/- on MCX ( $120.50 equivalent)
The general consensus among analysts on major TV channels suggest $150 in the next few weeks, while the Price charts are saying something opposite!!
It will be interesting to track both - the analysts' target as well as the targets of the price charts
Happy observing ! (i presume not many of you trade in crude oil)
CA Rajiv D Khatlawala
However signals were already available on the price charts of an 'impending downmove'.
The chart of Crude Oil on MCX clearly shows a 'negative divergence' on the RSI and MACD two commonly used indicators.
After touching a high of Rs 4785 it has fallen to current level of Rs 4500.Indications are strong that in coming days it may most likely test sub-Rs 4400 initially and then still lower levels of Rs sub-Rs 4200/-.
The divergences will be negated if price rises beyond 4800/- on MCX ( $120.50 equivalent)
The general consensus among analysts on major TV channels suggest $150 in the next few weeks, while the Price charts are saying something opposite!!
It will be interesting to track both - the analysts' target as well as the targets of the price charts
Happy observing ! (i presume not many of you trade in crude oil)
CA Rajiv D Khatlawala
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