MCX Crude Oil Analysis:
If we observe MCX Crude oil's month chart, 5 waves are completed at 2577 from 7784. There is positive divergence in RSI and Stoch while making 5th wave along with bullish hammer in month time frame.
Prices may now look for reversal and in coming moths/years may make new high (above 7784) or just may correct this fall.
As per fibo retracement, prices may retrace at least 3806 (23.6%) to 4565 (38.2%) for the fall from 7784 to 2577 (as per chart below)
Now, if we observe weekly chart, prices were falling from 7784 to 2577 in channel and made bullish engulfing candlestick pattern in week time frame along with positive divergence in MACD, RSI & Stoch.
Prices may now test this channel resistance at 3260 (already tested and corrected for the rise from 2577-3260) and at 3423.
In Hour chart, prices made 5 waves from 2577 to 3260. Now as per EW and fibo rettracement, 2 possibilities have been marked in hour chart below.
Option 1 - Correction for the rise 2577 to 3260 is completed at 2931 and 3rd wave started unfolding.
Option 2 - Complex correction is going on wherein wave (c) of b of 2 is unfolding.
In both scenarios, immediate direction of prices is up holding 2973.
